What is the difference between currency and money supply

Social Studies

1 answer:

emmainna [20.7K]1 year ago

4 0

Answer:

Money is intangible in origin, that implies it cannot be seen, touched, or smelled, yet its value in terms of numbers is vital and precise. It is a store of value, and its worth rises as the amount of money grows. Currency, on the other hand, is a concrete idea since it can be felt, touched, and has physical worth; currency is an unit of exchange and not a storage of wealth. Currency is mostly employed in international trade and transactions between the two nations. Currency is a promissory note or coin offered in the form of currency. Currency is a means via which money comes to life. The value of a currency when comparison to global currencies, known as the exchange rate, tells us about the country's foreign strategies and how to formulate its money supply. On the other hand, the money supply in a certain nation tells us about the nation's economic and fiscal policies.

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