Currency - Revision history

Jmdonev: 1 revision imported

2026-07-02T20:55:27Z

1 revision imported

← Older revision	Revision as of 20:55, 2 July 2026
(No difference)

energy>Jmdonev at 17:46, 25 June 2026

2026-06-25T17:46:05Z

← Older revision		Revision as of 17:46, 25 June 2026
Line 1:		Line 1:
	[[Category:Done ~~2020~~-01~~-31~~]]		[[Category:Done 2026-07-01]]
	[[File:currency.jpg\|100px\|thumbnail\|350px\|right\|Figure 1. Assorted bank notes of various national currencies.<ref>Pixabay. (May 14, 2016). ''Currency'' [Online], Available: https://pixabay.com/en/currencies-finance-business-pounds-69522/.</ref>]]		[[File:currency.jpg\|100px\|thumbnail\|350px\|right\|Figure 1. Assorted bank notes of various national currencies.<ref>Pixabay. (May 14, 2016). ''Currency'' [Online], Available: https://pixabay.com/en/currencies-finance-business-pounds-69522/.</ref>]]
	<onlyinclude>'''Currency''' can be thought of ~~ascoins~~ and paper bank notes (bills) commonly referred to as '''money'''. More formally, currency is a medium of exchange issued by the [[central bank]] of a country that is declared to be [[legal tender]] and is exchanged for [[goods and services]], it is also used as an accounting tool and in certain forms it acts as a store of value.</onlyinclude><ref>K.J. McKenzie, N.G. Mankiw and R.D. Kneebone. ''Principles of Macroeconomics'', ''5''th ed. Toronto, Canada: Nelson Educ., 2011 pp. ''224''.</ref> Bank notes and coins are also referred to as [[hard currency]]. Currency can be physical or digital, one can have a $100 bill that they use to purchase [[gasoline]] from a gas station or they could pay their [[electrical utility]] bill online through an electronic transaction. This is still the legal tender however. A currency is essentially anything that is commonly accepted as a medium of exchange, today it is bank notes and coins but in the past, societies have used shells, stones and many other methods. The use of money eliminates the problem of the barter system whereby two parties have only one [[goods and services \| good or service]] to trade each other. This raises a problem when one party does not want the others good or service as it has no value to them.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref>		<onlyinclude>'''Currency''' can be thought of as coins and paper bank notes (bills) commonly referred to as '''money'''. More formally, currency is a medium of exchange issued by the [[central bank]] of a country that is declared to be [[legal tender]] and is exchanged for [[goods and services]], it is also used as an accounting tool and in certain forms it acts as a store of value.</onlyinclude><ref>K.J. McKenzie, N.G. Mankiw and R.D. Kneebone. ''Principles of Macroeconomics'', ''5''th ed. Toronto, Canada: Nelson Educ., 2011 pp. ''224''.</ref> Bank notes and coins are also referred to as [[hard currency]]. Currency can be physical or digital, one can have a $100 bill that they use to purchase [[gasoline]] from a gas station or they could pay their [[electrical utility]] bill online through an electronic transaction. This is still the legal tender however. A currency is essentially anything that is commonly accepted as a medium of exchange, today it is bank notes and coins but in the past, societies have used shells, stones and many other methods. The use of money eliminates the problem of the barter system whereby two parties have only one [[goods and services \| good or service]] to trade each other. This raises a problem when one party does not want the others good or service as it has no value to them.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref>

	There are other forms of currency such as [[BitCoin]] which is a 'crypto currency' and is exclusively digital and is therefore not the issue of any state or central bank.<ref>For more information see: Investopedia [online] Available: http://www.investopedia.com/terms/b/bitcoin.asp.</ref> Crypto currencies are the subject of much debate and are not in wide circulation nor are they recognized on the global market as a legitimate currency.		There are other forms of currency such as [[BitCoin]] which is a 'crypto currency' and is exclusively digital and is therefore not the issue of any state or central bank.<ref>For more information see: Investopedia [online] Available: http://www.investopedia.com/terms/b/bitcoin.asp.</ref> Crypto currencies are the subject of much debate and are not in wide circulation nor are they recognized on the global market as a legitimate currency.

Jmdonev: 1 revision imported

2020-01-31T05:09:57Z

1 revision imported

← Older revision	Revision as of 05:09, 31 January 2020
(No difference)

Energy>Jmdonev at 20:44, 16 January 2020

2020-01-16T20:44:14Z

← Older revision		Revision as of 20:44, 16 January 2020
Line 1:		Line 1:
	[[Category:Done ~~2016~~-04-30]]		[[Category:Done 2020-01-31]]
	[[File:currency.jpg\|100px\|thumbnail\|350px\|right\|Figure 1. Assorted bank notes of various national currencies.<ref>Pixabay. (May 14, 2016). ''Currency'' [Online], Available: https://pixabay.com/en/currencies-finance-business-pounds-69522/.</ref>]]		[[File:currency.jpg\|100px\|thumbnail\|350px\|right\|Figure 1. Assorted bank notes of various national currencies.<ref>Pixabay. (May 14, 2016). ''Currency'' [Online], Available: https://pixabay.com/en/currencies-finance-business-pounds-69522/.</ref>]]
	<onlyinclude>'''Currency''' is a medium of exchange issued by the [[central bank]] of a country that is declared to be [[legal tender]] and is exchanged for [[goods and services]], it is also used as an accounting tool and in certain forms it acts as a store of value.</onlyinclude><ref>K.J. McKenzie, N.G. Mankiw and R.D. Kneebone. ''Principles of Macroeconomics'', ''5''th ed. Toronto, Canada: Nelson Educ., 2011 pp. ''224''.</ref> ~~This usually takes the form of coins and paper bank notes (bills) commonly referred to as [[money]].~~ Bank notes and coins are also referred to as [[hard currency]]. Currency can be physical or digital, one can have a $100 bill that they use to purchase [[gasoline]] from a gas station or they could pay their [[electrical utility]] bill online through an electronic transaction. This is still the legal tender however. A currency is essentially anything that is commonly accepted as a medium of exchange, today it is bank notes and coins but in the past, societies have used shells, stones and many other methods. The use of money eliminates the problem of the barter system whereby two parties have only one [[goods and services \| good or service]] to trade each other. This raises a problem when one party does not want the others good or service as it has no value to them.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref>		<onlyinclude>'''Currency''' can be thought of ascoins and paper bank notes (bills) commonly referred to as '''money'''. More formally, currency is a medium of exchange issued by the [[central bank]] of a country that is declared to be [[legal tender]] and is exchanged for [[goods and services]], it is also used as an accounting tool and in certain forms it acts as a store of value.</onlyinclude><ref>K.J. McKenzie, N.G. Mankiw and R.D. Kneebone. ''Principles of Macroeconomics'', ''5''th ed. Toronto, Canada: Nelson Educ., 2011 pp. ''224''.</ref> Bank notes and coins are also referred to as [[hard currency]]. Currency can be physical or digital, one can have a $100 bill that they use to purchase [[gasoline]] from a gas station or they could pay their [[electrical utility]] bill online through an electronic transaction. This is still the legal tender however. A currency is essentially anything that is commonly accepted as a medium of exchange, today it is bank notes and coins but in the past, societies have used shells, stones and many other methods. The use of money eliminates the problem of the barter system whereby two parties have only one [[goods and services \| good or service]] to trade each other. This raises a problem when one party does not want the others good or service as it has no value to them.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref>

	There are other forms of currency such as [[BitCoin]] which is a 'crypto currency' and is exclusively digital and is therefore not the issue of any state or central bank.<ref>For more information see: Investopedia [online] Available: http://www.investopedia.com/terms/b/bitcoin.asp.</ref> Crypto currencies are the subject of much debate and are not in wide circulation nor are they recognized on the global market as a legitimate currency.		There are other forms of currency such as [[BitCoin]] which is a 'crypto currency' and is exclusively digital and is therefore not the issue of any state or central bank.<ref>For more information see: Investopedia [online] Available: http://www.investopedia.com/terms/b/bitcoin.asp.</ref> Crypto currencies are the subject of much debate and are not in wide circulation nor are they recognized on the global market as a legitimate currency.


	== Types of Currency ==		== Types of Currency ==
Line 24:		Line 23:
	[[File:Euro_ECB.png\|350px\|thumbnail\|right\|Figure 2. The European Central Bank HQ in Brussels, Belgium.<ref>Wikimedia Commons. (May 14, 2016). ECB [Online]. Available: https://commons.wikimedia.org/wiki/File:Euro_ECB.PNG</ref>]]		[[File:Euro_ECB.png\|350px\|thumbnail\|right\|Figure 2. The European Central Bank HQ in Brussels, Belgium.<ref>Wikimedia Commons. (May 14, 2016). ECB [Online]. Available: https://commons.wikimedia.org/wiki/File:Euro_ECB.PNG</ref>]]


	Some currencies are not of the country that recognizes them as legal tender. Ecuador recognizes the USD as legal tender and accepts the currency despite it not being the issue of their country.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''381''.</ref>		Some currencies are not of the country that recognizes them as legal tender. Ecuador recognizes the USD as legal tender and accepts the currency despite it not being the issue of their country.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''381''.</ref>

			The Euro (€) is used as a [[common currency]] within the Euro Zone (the countries of the European Union which use the Euro), so it is not the currency of another country but that of a supranational entity, the [[European Central Bank]] (ECB). This type of shared currency creates a [[currency union]], which is a relationship that exists when two or more states share a common currency and is predicated on a shared or similar monetary policy.<ref>A. B. Abel, et al. “Exchange Rates, Business Cycles and Policy,” in ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, ''10'', ''3'', ''380''.</ref> The Euro acts the same way any other currency does on the market despite its unique disposition.

	~~The Euro (€) is used as a~~ [[~~common currency~~]] ~~within the Euro Zone (the countries of the European Union which use the Euro), so it is not the currency of another country but that of a supranational entity, the~~ [[~~European Central Bank~~]] ~~(ECB). This type of shared currency creates a~~ [[~~currency union~~]]~~, which is~~ a relationship that exists when two or more states share a common currency and is predicated on a shared or similar monetary policy.<ref>A. B. Abel, et al. “Exchange Rates, Business Cycles and Policy,” in ''Macroeconomics'', ''6''th ed. Toronto, Canada: ~~Pearson, 2011, ''10'', ''3'', ''380''.</ref> The Euro acts the same way any other currency does on the market despite its unique disposition.~~		==For Further Reading==
			*[[Wealth]]
			*[[Market]]
			*[[Cost]]
			*[[Price]]
			*Or explore a [[Special:Random\|random page]]

	==References==		==References==
	{{reflist}}		{{reflist}}
			[[Category: Uploaded]]

Jmdonev: 1 revision imported: From the summer

2016-09-17T22:29:23Z

1 revision imported: From the summer

← Older revision	Revision as of 22:29, 17 September 2016
(No difference)

Jmdonev at 21:04, 25 June 2016

2016-06-25T21:04:51Z

New page

[[Category:Done 2016-04-30]]
[[File:currency.jpg|100px|thumbnail|350px|right|Figure 1. Assorted bank notes of various national currencies.<ref>Pixabay. (May 14, 2016). ''Currency'' [Online], Available: https://pixabay.com/en/currencies-finance-business-pounds-69522/.</ref>]]
<onlyinclude>'''Currency''' is a medium of exchange issued by the [[central bank]] of a country that is declared to be [[legal tender]] and is exchanged for [[goods and services]], it is also used as an accounting tool and in certain forms it acts as a store of value.</onlyinclude><ref>K.J. McKenzie, N.G. Mankiw and R.D. Kneebone. ''Principles of Macroeconomics'', ''5''th ed. Toronto, Canada: Nelson Educ., 2011 pp. ''224''.</ref> This usually takes the form of coins and paper bank notes (bills) commonly referred to as [[money]]. Bank notes and coins are also referred to as [[hard currency]]. Currency can be physical or digital, one can have a $100 bill that they use to purchase [[gasoline]] from a gas station or they could pay their [[electrical utility]] bill online through an electronic transaction. This is still the legal tender however. A currency is essentially anything that is commonly accepted as a medium of exchange, today it is bank notes and coins but in the past, societies have used shells, stones and many other methods. The use of money eliminates the problem of the barter system whereby two parties have only one [[goods and services | good or service]] to trade each other. This raises a problem when one party does not want the others good or service as it has no value to them.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref>

There are other forms of currency such as [[BitCoin]] which is a 'crypto currency' and is exclusively digital and is therefore not the issue of any state or central bank.<ref>For more information see: Investopedia [online] Available: http://www.investopedia.com/terms/b/bitcoin.asp.</ref> Crypto currencies are the subject of much debate and are not in wide circulation nor are they recognized on the global market as a legitimate currency.

== Types of Currency ==
=== Fiat Currency ===

Commonly referred to as '''Fiat money''', it obtains its value by decree, that is, a government or central bank determines the value of a particular denomination of a piece of money and it is accepted as such.<ref>J.Black, N. Hashimzade, and G. Myles. (2009) ‘’Fiat Money’’, 3rd ed. [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1175?rskey=ZGl56B&result=1.</ref> The value of the currency is dictated by the central bank, however, fiat currency is subject to market forces which help determine the value of the currency on the open market. A central bank such as the [[central bank | Bank of Canada]] (BoC) might issue a $10 bank note and within Canada it is valued at a 1:1 exchange ratio. If the same $10 is used to purchase goods and services from the United States it is subject to the [[foreign exchange market | foreign exchange market forces]] which might value it at $0.85 [[national currencies | USD]] and therefore the value of the $10 on the open market (towards the US) is only $8.50.

Fiat money is susceptible to [[depreciation]] of its [[value]] through [[inflation]] and in some cases it may become worthless through the process of [[hyperinflation]].<ref>ibid. 227.</ref> This is because it is not backed by an [[asset]] and therefore does not have any intrinsic value to ensure its standing in the market. That said, asset backed currencies have been abandoned as the value of commodities such as gold are prone to fluctuation on the [[commodity market | global commodity market]]s. Almost every country in the world uses fiat currency; this allows governments to control economies [[monetary policy]].

=== Asset Backed Currency ===

An '''asset backed currency''' has intrinsic value as it is backed by an asset such as [[periodic table of elements | gold]].</onlyinclude><ref>S. N. Durlauf and L. E. Blume. (2008) “Commodity Money” in ‘’The New Palgrave Dictionary of Economics Online,’’ ‘’2’’nd ed. [Online], Available: http://www.dictionaryofeconomics.com/article?id=pde2008_C000235&edition=current&q=money&topicid=&result_number=1</ref> An asset backed currency can be traded in for a given quantity of the asset it is backed by. An example of this is the USD being pegged to gold after the [[Bretton Woods Conference]] of 1944 whereby the world pegged their currencies to the USD and the USD was backed by gold. Under this system any country with USD could exchange their USD with the Federal Reserve for a given amount of gold.</onlyinclude><ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''374-375''.</ref> Currently almost every country in the world (including both Canada and the United States) uses fiat currency.

== Currency Rates==

Currencies can be either a '''floating currency''' or a '''fixed currency'''. The value of a floating currency is determined by mechanisms within the foreign exchange market.<onlyinclude><ref>J.Black, N. Hashimzade, and G. Myles. (2009) ‘’A Dictionary of Economics’’, 3rd ed. [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1234?rskey=5q5Y9k&result=1 [14 May 2016]</ref> A fixed currency is pegged to another currency such as the USD or a commodity such as gold and the rate of exchange does not change.</onlyinclude><ref>ibid.[Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-1219?rskey=yXAKds&result=1 [14 May 2016]</ref>

== Unique Currency Systems ==
[[File:Euro_ECB.png|350px|thumbnail|right|Figure 2. The European Central Bank HQ in Brussels, Belgium.<ref>Wikimedia Commons. (May 14, 2016). ECB [Online]. Available: https://commons.wikimedia.org/wiki/File:Euro_ECB.PNG</ref>]]

Some currencies are not of the country that recognizes them as legal tender. Ecuador recognizes the USD as legal tender and accepts the currency despite it not being the issue of their country.<ref>A. B. Abel, et al. ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, pp. ''381''.</ref>

The Euro (€) is used as a [[common currency]] within the Euro Zone (the countries of the European Union which use the Euro), so it is not the currency of another country but that of a supranational entity, the [[European Central Bank]] (ECB). This type of shared currency creates a [[currency union]], which is a relationship that exists when two or more states share a common currency and is predicated on a shared or similar monetary policy.<ref>A. B. Abel, et al. “Exchange Rates, Business Cycles and Policy,” in ''Macroeconomics'', ''6''th ed. Toronto, Canada: Pearson, 2011, ''10'', ''3'', ''380''.</ref> The Euro acts the same way any other currency does on the market despite its unique disposition.

==References==
{{reflist}}