Home       Indian Stock Companies      Primary Market      Mutual Funds      Stock Market Blog      Advertise With Us      Contact Us     

Follow indianshares on Twitter
  Indian Stock Companies
  How to Start Trading
  Search on Stock Companies
  ELSS Scheme
  Dematerialsation

  Women in Stockmarket
  History of stockmarket
  Investment Opportunities for NRI
  Currencies
  Delivery instruction slips
  Demat securities
  Derivatives
  Trends in stock market
  Online trading in Stock-Market
  Depository
  BSE-and-NSE
  Upper circuit value
  Unpredictable stock market
  Tips for investing in stock market
  Attraction of Indian stock market
  Stock Brokers
  Stock market the mind game
  Stock market information
  Stock exchange and you
  scenario of indian stock market
    Corporate Benefits
    Delivery Instruction Slips
    Demat Securities
    Nomination
    Pledging
    Rematerialisation
    Trading and Settlement
    Transaction Statement

  Depository and Particpants
    DP and Stock Broker
    DP Account
    Rights and Obligations
You are Successfully Registered.Please check your email account for verification
Email Id Already exists..
Sign up for Indian share Alert
Email:

  Derivatives
    Options
    Risk Management
    Settlement
    Trading
    Advantages of Trading

  Stock Glossary
    Bonus Shares
    Dabba Trading
    Global Depository Receiptst
    Net Market Value
    Splitting and Consolidation
    Trade for Trade

  Mutual Funds
    How to Make Money From Your Fund
    Features of Mutual Funds
    Benefits of Investing
    Pros and Cons
    Investment Objective
    Types of Mutual Funds

  Primary Market
    Book Building
    Investors Guide for IPOs
    Issue Process
    Listing

  Stock Brokers
    Rules and Regulations


Download Cooking App Download UK Tourism App
Download Indian Tourism App Download Indian Film App




Indian Stock Market >> Derivatives >> Trading    






Currency

A currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value. A currency is the dominant medium of exchange. To facilitate trade between currency zones, there are exchange rates, which are the prices at which currencies (and the goods and services of individual currency zones) can be exchanged against each other. Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate regime. In common usage, currency sometimes refers to only paper money, as in coins and currency, but this is misleading. Coins and paper money are both forms of currency.





Early currency

The origin of currency is the creation of a circulating medium of exchange based on a unit of account which quickly becomes a store of value. Currency evolved from two basic innovations: the use of counters to assure that shipments arrived with the same goods that were shipped, and later with the use of silver ingots to represent stored value in the form of grain. Both of these developments had occurred by 2000 BC. Originally money was a form of receipting grain stored in temple granaries in ancient Egypt and Mesopotamia.




This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years. However, the collapse of the Near Eastern trading system pointed to a flaw: in an era where there was no place that was safe to store value, the value of a circulating medium could only be as sound as the forces that defended that store. Trade could only reach as far as the credibility of that military. By the late Bronze Age, however, a series of international treaties had established safe passage for merchants around the Eastern Mediterranean, spreading from Minoan Crete and Mycenae in the North West to Elam and Bahrein in the South East. Although it is not known what functioned as a currency to facilitate these exchanges, it is thought that ox-hide shaped ingots of copper, produced in Cyprus may have functioned as a currency.

It is thought that the increase in piracy and raiding associated with the Bronze Age collapse, possibly produced by the Peoples of the Sea, brought this trading system to an end. It was only with the recovery of Phoenician trade in the ninth and tenth centuries, that saw a return to prosperity, and the appearance of real coinage, possibly first in Anatolia with Croesus of Lydia and subsequently with the Greeks and Persians.

In Africa many forms of value store have been used including beads, ingots, ivory, various forms of weapons, livestock, the manilla currency, ochre and other earth oxides, and so on. The manilla rings of West Africa were one of the currencies used from the 15th century onwards to buy and sell slaves. African currency is still notable for its variety, and in many places various forms of barter still apply.

Modern currencies

Nowadays, the International Organization for Standardization has introduced a three-letter system of codes (ISO 4217) to define currency (as opposed to simple names or currency signs), in order to remove the confusion that there are dozens of currencies called the dollar and many called the franc. Even the pound is used in nearly a dozen different countries, all, of course, with wildly differing values. In general, the three-letter code uses the ISO 3166-1 country code for the first two letters and the first letter of the name of the currency (D for dollar, for instance) as the third letter.

Privately issued currencies

Several large companies issue points to their customers, to be redeemed for products and services produced by that company. Often, a network of companies will join to share in the offering and redemption of points. While these can hardly be considered stable currency systems, they present many of the same features as "legitimate" currency: they are a store of value, issued in discrete units; they are controlled by a central issuing authority; and they have varying rates of exchange with other forms of currency. For example, frequent flyer miles can be bought using U.S. dollars.

Local currencies

In economics, a local currency is a currency not backed by a national government, and intended to trade only in a small area. Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving the people living there a medium of exchange that they can use to exchange services and locally-produced goods (In a broader sense, this is the original purpose of all money.) Opponents of this concept argue that local currency creates a barrier which can interfere with economies of scale and comparative advantage, and that in some cases they can serve as a means of tax evasion.
Home   Stock Market Blog    Privacy Policy   Advertise with Us   Contact Us   Sitemap  
Copyright © Site Owned By Vcode Infotech, All Rights Reserved