Real Money
Real money is a term used to describe physical currency, such as coins and paper money, that is used as a medium of exchange for goods and services. It is also known as fiat money, or legal tender, and is issued by a government or central bank. Real money is distinct from virtual money, which is a digital representation of value that is not issued by a government or central bank and is not legal tender.
History of Real Money
The use of real money dates back to ancient times, when bartering was the primary form of exchange. As civilizations developed, coins and paper money were introduced as a more efficient way to facilitate transactions. Coins were first used in China around 1000 BC, and paper money was first used in China during the 7th century AD. Over time, the use of real money spread throughout the world, becoming the primary form of exchange in most countries.
Comparison of Real Money and Virtual Money
| Real Money | Virtual Money |
|---|---|
| Issued by a government or central bank | Not issued by a government or central bank |
| Legal tender | Not legal tender |
| Physical currency | Digital representation of value |
Summary
Real money is a term used to describe physical currency, such as coins and paper money, that is used as a medium of exchange for goods and services. It is issued by a government or central bank and is legal tender. Real money is distinct from virtual money, which is a digital representation of value that is not issued by a government or central bank and is not legal tender. For more information about real money, visit websites such as Investopedia, Bankrate, and The Balance.
See Also
- Fiat Money
- Virtual Money
- Cryptocurrency
- Cash
- Coinage
- Currency
- Money Supply
- Inflation
- Deflation
- Monetary Policy
