Money FAQs:

Q: Is money any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context?

A: Yes, or is easily converted to such a form.

Q: Was money commodity money?

A: Yes, such as gold and silver coins.

Q: Is money the most liquid asset because it is universally recognised and accepted as the common currency?

A: Yes.

Q: Is money the commodity?

A: Yes.

Q: Was money made into an acceptable nationwide currency?

A: Yes.

Q: Is money also backed by taxes?

A: Yes.

Q: Is money a form of fraud or forgery?

A: Yes.

Q: Was money eventually replaced by representative money?

A: Yes, such as the gold standard, as traders found the physical transportation of gold and silver burdensome.

Q: Was money also associated with wars?

A: Yes, and financing of wars, and therefore regarded as part of maintaining a standing army.

Q: Is money created through fractional-reserve banking?

A: Yes.

Q: Is money a broad term that refers to any financial instrument that can fulfill the functions of money?

A: Yes, These financial instruments together are collectively referred to as the money supply of an economy.

Q: Is money similar to barter?

A: Yes, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money.

Q: Is money historically an emergent market phenomenon establishing a commodity money?

A: Yes, but nearly all contemporary money systems are based on fiat money.

Q: Is money simply a third party’s promise to pay which we accept as full payment in exchange for goods?

A: Yes.

Q: Is money used to intermediate the exchange of goods and services?

A: Yes, and it is performing a function as a medium of exchange.

Q: Is money a medium of exchange that can be transported both across space and time?

A: Yes.

Q: Is money money that consists of token coins?

A: Yes, and paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver.

Q: Was money first introduced in Sweden in 1661?

A: Yes.

Q: Is money imitation currency produced without the legal sanction of the state or government?

A: Yes.

Q: Is money distinguished as: a medium of exchange?

A: Yes, a unit of account; a store of value; and, sometimes, a standard of deferred payment.