One: Money is the product of commodity exchange, and it is a commodity that breaks away from the commodity world and acts as a universal equivalent in the process of commodity exchange. Commonly known as money. Money (CCY) is a tool to measure prices, a medium to buy goods and a means to preserve wealth. It is a contract between property owners and the market about exchange rights, and it is essentially an agreement between property owners. Including currency and banknotes in circulation.
Two: There are still many arguments about the nature of money in academic circles. There are various concepts of money in economics. At first, it was defined by the function of money, and later it was defined as economic variable or policy variable. The technical term is currency, which mainly refers to "currency in circulation".
3. Money is essentially a contract between owners about exchanging rights, and different forms of money are essentially unified. In the past, due to people's unclear understanding of the essence of money, money was mistakenly divided into different types from different angles, such as: debt currency and non-debt currency according to the commodity value of money, convertible currency and non-convertible currency according to whether the exchange ratio of precious metals was agreed.
Formally, according to the commodity value of money, it can be divided into physical money and formal money. Physical currency itself is a special commodity, including value, such as sheep and precious metals. Formal currency itself has no value, its value is agreed by contract, only the contract value. The two forms are different, but they are essentially unified, that is, they are both agreed as exchange media and have contractual value.
Five: Usually, each country only uses one currency, which is issued and controlled by the central bank. But there are exceptions, that is, many countries can use the same currency, such as the common euro of the European Union, the same franc of the West African economy, and the equivalent currencies with different names that can freely circulate within the Latin monetary union in the19th century. A country can choose the currency of another country as its legal tender.
As money is a commodity, it has the same use value and exchange value as all commodities. In different forms of value movement, money plays different roles: value scale, circulation means, payment means, storage means and world currency. Among them, value scale and circulation means are the basic functions of money. The other three functions are all derived from these two.