What is Money? Is it a Real Concept or Just an Old Term?
Currencies are normally used to describe monetary units of a country denominated in a foreign currency. A currency in this sense is currency in any case, either in circulation or being used as a medium of trade, usually circulating fixed banknotes and coins on the market. A common unit of currency is the US dollar, but other currencies are used, usually in international trade, for instance the British pound, the Euro, the Japanese yen, the Swiss franc, and the Australian dollar.
Currencies are generally measured in terms of their gold and silver content, because these are the only substances that can be used everywhere that monetary transactions are taking place. In international trade, the principal unit of currency is the US dollar, but other currencies are traded in smaller sums, for instance the British pound, the Euro, the Japanese yen, and the Swiss franc. Currencies may also be measured in terms of their commercial interest. This is calculated as the current price of the commercial paper usually issued by the central banks of countries, the major economic powerhouses of the world. The trading of currencies is mainly based on the value of the currencies against each other.
There is no particular standard for measuring the value of other currencies, but usually the market price of the base currency is thought to be the measure of the true worth of that monetary unit. The buying and selling of these currencies and their conversion is an important part of the business activities of the commercial establishments of the world. The two main articles of knowledge on the topic of the value of different currencies are the following: The first article covers the historical development of the prices of different currencies over time, and the second article covers the various measures used in determining the present day value of money. Now, if you want to learn more about the economic system, and the role of money and currency in it, and especially how it plays into our lives today, you should definitely read the main article about the definition of money and the role of Currencies in our economical structure.