bahrain currency

bahrain currency

In economics, the term currency can refer either to a particular currency, for

example the US Dollar, or to the coins and banknotes of a particular currency,

which comprise the physical aspects of a nation’s money supply. The other part

of a nation’s money supply consists of money deposited in banks (sometimes called

deposit money), ownership of which can be transferred by means of cheques (in English)

or checks (in American English), or other forms of money transfer such as credit and

debit cards. Deposit money and currency are ‘money’ in the sense that both are acceptable

as a means of exchange, but money need not necessarily be ‘currency

Historically, money in the form of currency has predominated. Usually (gold or silver) coins of intrinsic value commensurate with the monetary unit (commodity money), have been the norm. By contrast, modern currency, as fiat money, is intrinsically worthless. The prevalence of one type of currency over another in commodity money systems has arisen, usually when a government designates through decrees, that only particular monetary units shall be accepted in payment for taxes.