What Is a Currency?
A currency is anything that stores value and can be used to pay for goods and services. It is also called a medium of exchange because it allows two people in a trade to agree on a standard price buy australian money online . In general, a currency can be either physical (e.g. coins or banknotes) or digital (e.g., high-tech cryptocurrency). Historically, currencies were made out of precious metals like gold and silver, but more recently they have become more non-precious. There are many different kinds of currency, but there are three basic types: fiat money, commodity money, and representative money. The first two rely on the economy at large as a store of value, while the third reflects the government’s physical metal reserves. Fiat money, such as the American dollar, consists of notes and coins issued by a government, and often includes a fractional unit, such as 100 cents. This unit of currency is usually backed by gold, but sometimes it is not. Commodity money, on the...