Money is an object or the entry is generally accepted as payment for goods and services and repayment of debt in a specific country or socio-economic context. The main functions of money are distinguished as: a medium of Exchange; units of account; stores the value; and, at times in the past, pending payment standards. Object type or record verified safe that fulfills these functions can serve as money.
The money comes as commodity money, but almost all contemporary money systems are based on Fiat money. Fiat money without intrinsic value is used as a physical commodity, and derives its value by Government must be declared by a legitimate; that must be accepted as a form of payment within the borders of the country, for “all debts, public and private”.
State money supply consists of currency (banknotes and coins) and the bank money (the balance held in checking accounts and savings). Money banks usually form as far as the lion’s share of the money supply.