Q:

What is the difference between money and currency?

A:

Quick Answer

Gold Silver explains that the most significant difference between money and currency is that currency does not have consistent value. Currency is used as a physical representation of value that changes over time and varies from one country to the next. According to the Gold Silver website, gold and silver are the only items that have served as money and represented fixed value throughout human history.

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What is the difference between money and currency?
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Full Answer

Gold Silver notes that money and currency have numerous similarities as well, including the ability to be used in trade, counted and exchanged in various markets. While currency is easy to trade and generally light to carry around, like the dollar bill, money is more cumbersome. Therefore, the average person uses currency such as cash to make everyday transactions. According to Wikipedia, cash is the most common physical form of currency in use today, and it comes in either banknotes or coins.

Wikipedia explains the gradual transition from carrying gold coins as a form of money to adopting paper currency as a stand-in for real money. Money such as gold or silver is far more difficult to transport. While money was once measured by weight, currency is measured by denomination and is intended to represent a certain amount of money.


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