Currency PNG Transparent Images

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License Info: Creative Commons 4.0 BY-NC


Submitted by on Nov 10, 2018

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Currency is the most specific use of the word, refers to money in any form, when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) that is often used, especially in a country. According to this definition, dollars, British pounds, Australian dollars, European euros and Russian rubles are examples of currency. These different currencies are recognized as securities and are traded among the peoples of the foreign exchange markets, which determine the relative values ​​of various currencies. The currency in this sense is determined by governments, and each type has limited acceptance limits.

Each country has its own currency. For example, the official currency of Switzerland is the Swiss franc, and the official currency of Japan is the yen. The exception would be the euro, which is used as a currency for most countries in the Eurozone. The most important feature of most modern currencies is that the material that consists of the currency itself – for example, paper in a dollar bill, is worthless, so the value of the entire currency is in its value as a medium of exchange.

Some currencies, including cryptocurrencies, such as Bitcoin and Litecoin, as well as other online currencies and branded currencies, are not associated with any country. Branded currencies, such as airline and credit card points or in-game credits, are priced based on the value of the products or services to which they are tied. Control over digital currencies is completely decentralized, and the exchange rate of digital currencies can vary significantly over a short period of time.

Investors often trade currencies in the foreign exchange market, which is one of the most traded markets in the world. The exchange rate is the exchange rate of two currencies. These rates can be “floating” or “fixed”; The floating point is that the value of a currency changes in relation to the mechanisms of the currency market, a fixed currency is a currency associated with another currency, such as gold or a currency basket.

Most currencies, such as the US dollar, can be traded (or converted) into another currency in the money market. Individuals, as well as international tourists, who want to trade in hard currency, usually do so in the exchange window or in a bank without any restrictions or artificially imposed fixed cost. These currencies are considered fully convertible. Partially convertible currencies are currencies that are controlled by the central bank. Central banks sometimes do this to control hot money and international investment. Non-convertible currencies are currencies that do not participate in the foreign exchange market and cannot be converted.

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