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What is currency & how does it work?
What is the difference between money and currency?
What is money & how does it work?
Why do we use currency?
Jun 27, 2023 · Currency is a generally accepted form of payment usually issued by a government and circulated within its jurisdiction. The value of any currency fluctuates constantly in relation to other...
Nov 15, 2021 · Money is anything that acts as a store of value and a medium of exchange; it only has value because people agree that it does. Because money is based on an agreement, the actual currency can be any sort of physical item, or it could be entirely electronic.
How Currency Works. Currency seems like a very simple idea. It's only money, after all, and that's just what we use to buy the things we want and need. We get paid by our employers, and we use that money to pay the bills, buy our food, and purchase goods and services.
- Ed Grabianowski
- 4 min
Jul 1, 2022 · An exchange rate tells you the value of your currency in another currency. Think of it as the price being charged to purchase that currency. For example, in June of 2022, 1 euro was equal to 1.05 U.S. dollars, and 1 U.S. dollar was equal to 0.95 euro.
In short, money works because people believe that it will. As the means of exchange evolved, so did its source—from individuals in barter, to some sort of collective acceptance when money was barley or shells, to governments in more recent times.
