The money is the instrument of exchange that a society recognise as the legitim way to pay for goods and services.
This instrument depend on the type of society, the period of time, the context and the country.
The money has different functions. It is a exchange medium (a kind of intermediate in the exchange of goods and services), a mesuare of value of a service or good in the market, a store of value and a standard of deferred payment.
Different Types of Money
There are different types of money, the more populars are coin or paper money, comercial bank money, electronic or digital money.
1. Coin or Paper Money
The coins and the paper money are issued by an entity in the country, the most popular entity is the national bank of the country of issue.
The paper and the coin is no real value itself, the value is determinated by the entity and the society.
Each country has its specific currency (in case of Europe, the European Union has a common currency) and it can be compare with other. The United State dollar is the most popular currency nowadays.
2. Commercial Bank Money
Commercial Bank Money is the money that is in our bank account, we can deposit or withdrawn money from the bank’s ATM and use paper money, or we can use the credit or debit card that the bank has given to pay, and the money will be taken out of our account.
If the payment is done with a debit card, the money is taken instantly, if we pay with credit card, we will have to pay to the bank per month the whole amount that we owe. Some credit card transactions can be done in installments.
3. Electronic or Digital Money
Electronic or Digital Money is the money stored electronically in a card with a microprocessor that load cash money. The most famous digital money is the Bitcoin.