Currency: forms and functions
- Key Data Market
- Degree of market concentration
- Technological developments
- Changes in consumer behavior
Generally, we define currency as a "liquid asset whose shapes vary between economic and social structures, and are used in the evaluation and settlement of trade." Yet despite this simple and concise definition, the currency still seems like an "object" which is strange and complex, like, for example, "value", and the ultimately paradoxical and fluctuating paper money.
In reality, we become increasingly aware that the currency is becoming increasingly difficult to understand, both because of the different forms it can take today, and its various functions since a banknote occupies a place today that can be as valuable a piece of iron before. We can ask ourselves what the forms and functions of money are.
In other words, how did money operate, and what are its features and advantages over other trading systems. It will therefore be revealed through our understanding of the role of money and interest in this term, whose qualification is more uncertain because of the different forms and functions it actually covers.
Initially, we see that the currency has undergone a process of dematerialization giving a multiplicity of forms, and in a second part we see that the different functions of money are changing the process of exchange.
Even before showing interest in the current forms that takes money, this document first traces the long and fascinating history of currency.
Originally, before the existence of money, was the barter system, which was a direct exchange or money without mediation (apples for strawberries for example). This was known as interim trade.
Tags: forms and functions of currency, history of currency