Money vs Currency

Difference Between Money vs Currency

Money and Currency are often used interchangeably in the general world however when they are looked in the light of economic functions these two have two very different meanings and interpretations. To layman money and currency are one and the same thing. But has different economic implications. In this Money vs Currency article, we will try and understand the key differences between money vs currency and how both are them are different from each other.

Head to Head Comparison between Money vs Currency (Infographics)

Below is the top 5 difference between Money vs Currency

Key Differences between Money vs Currency

Let us discuss some of the major differences between Money vs Currency:

• Money is intangible in nature which means that it cannot be felt or touched, and it cannot be smelled however in terms of numbers the importance of money is paramount and impeccable. It is a store of value and the value increase as the money amount increases. On the other hand, Currency is a tangible concept as it can be felt, touched, and has physical value, the currency is a medium of exchange and it is not a store of value. Currency is mostly used in international transactions and trade between the two countries.
• Currency refers to a promissory note or a coin that is presented in the form of currency. Currency is a medium through which money becomes live. Money is often categorized under good money and bad money, good money is considered to be gold and bad money is considered to be a currency.
• The value of a certain currency, when compared to international currencies which are normally known as the exchange rate, tells us about the foreign policies and how to sound it the monetary policy of the country. On the other hand, the Money supply in a particular country tells us about the economic and the fiscal policies of the country and can also be looked at like an economic indicator
• Currency is often referred to as a legal tender as it is approved by the government and can be used domestically anywhere as a method of payment to be used and the government will accept it in the payment of the taxes. Money, on the other hand, is subjective in nature and can be or cannot be accepted anywhere and everywhere as a medium of exchange or a store of value
• A currency has to be derived from the Latin word “currere” which means “to run” or “to flow”. On the contrary, Money has been derived from the Roman word “monere” which means “to warn” in Latin.

Money vs Currency Comparison Table

Let’s look at the top 5 Comparison between Money vs Currency

Conclusion

Money vs Currency are often used interchangeably and it is very difficult to draw a thin line of difference between the two. Money has certain features like it should be divisible, durable, portable which currently does not have. Currency is simply a form of paper which numbers of it. Currency, however, can perform the above function but it cannot perform the one important function that money does that is currency cannot act as a store of value.

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