| A currency is a
unit of exchange, facilitating the
transfer
of goods
and/or
services. It is one form of
money,
where money is anything that serves as a medium of exchange, a
store of value, and a standard of value. A currency is the
dominant medium of exchange. To facilitate
trade between currency zones, there are
exchange rates, which are the prices at which currencies (and
the goods and services of individual currency zones) can be
exchanged against each other. Currencies can be classified as either
floating currencies or
fixed currencies based on their
exchange rate regime. In common usage, currency sometimes
refers to only paper money, as in coins and currency, but
this is misleading. Coins and paper money are both forms of
currency. |