Question

It is said that " All currency is money but all money is not currency. " Explain the statement

Answer 1

Answer:

The major difference between Money vs Currency is that money is entirely numerical i.e. it’s only intangible which one cannot touch or smell whereas currency can be touch and smell and its tangible.

Check, online mode etc. are all the types of money as stated earlier and all that is in hard currency whether being coins or currency notes can be considered a type of currency although those also represent numbers.

One need to print currency in order to have them in plenty and its but obvious its work of the government whereas there is no requirement to print money as its intangible and only can be seen as numbers for example when you shop online and when you purchase any product you would be required to enter your bank details and all you would see is transfer of numbers from your bank account to merchant’s account.

Money is comparatively easier to be traded for a commodity or any service whereas currency although is also easy to exchange but it does carry small inconvenience of carrying same along with oneself and when it is exhausted you would need to go to a bank and withdraw the same.

Currency can be termed as that money which brings the latter to life.

Currency must be in circulation for it to be traded and grow whereas money is intangible and can be easily circulated anywhere in the world.

Currency has its own limitation that is when one travels or changes the country the physical currency needs to be exchanged for that country’s currency as none of the countries have same currencies they all print their own currency whereas money gets easily converted into another currency by using the facility of exchange rate which is again a number.

A fiat currency can be exchanged for services and goods but in the end, it has no intrinsic value whereas soft money has intrinsic value.

In earlier days government use to print currency by backing the same with gold and silver and for money, no such thing would be required.

Answer 2

Answer:

HERE IS THE EXPLANATION FOR THIS

Explanation:

HERE THE CURRENCY IS A FORM OF MONEY WHICH ITSELF IS SELF EVIDENT THAT IT IS MONEY. BUT BY MONEY, WE MEAN TO SAY THE VALUE OF SOMETHING IN TERMS OF USUALLY WHICH WE TAKE AS MONEY. WE SHOULDN'T FORGET THE FACT THAT LOT MANY YEARS BEFORE INDIANS USED CATTLE AND GRAINS AS MONEY.

SO ITS QUITE CLEAR THAT MONEY IS JUST THE VALUE AND IT CAN TAKE ANYFORM ACCORDING TO OUR CONVINIENCE.

SO ALL CURRENCY IS MONEY BUT ALL MONEY IS NOT CURRENCY!

HOPE IT HELPS

.........