What's what in finances: Currency

Money generally accepted in circulation in a certain jurisdiction

Currency is the coins and banknotes which constitute the physical component of a country's money supply. Coins and notes have a physical identity, whereas the other assets comprising the money supply such as bank deposits, are book-keeping entries and have no tangible life of their own.

The term currency is often used interchangeably with the term cash in economic analysis and monetary policy.

Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.

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