Basics of Money

My two cents – Basics of Money

Last week I saw a post on an article “ Singapore Banks are so flush with cash that they are struggling to put it to work”  This has brings on some thoughts for me on money (not how to use it but basics of money).

We had some fun answers on what is money from a group of friends and as expected different views and even draw blanks.

Let’s talk about some facts on basics of money

Do you know

The term Money and currency are closely related, when we talk about Money undoubtably we also refer to currency. This is also how the country is valued.

In general

Money in form of notes or coins issued by a government, are known as cash.

Accepted at face value which known as currency used by people in that country to carry out monetary exchanges.

And over the years as we evolve and the availability of tools and applications the physical use of notes and coins become lesser. However, the basics remained.

The 3 basic functions of money

Medium of exchange

Accepted by people for payment of goods and services

A store value and a unit of account – use to measure the value of goods & services

Points to Ponder

To use, to invest, to collect? So we learn how to have it wisely 🙂

Disclaimer: The article is for basic fun facts only.