Money

Money is defined as that means of payment generally accepted as a means of collection or payment used to carry out economic transactions.

There are different types of money:

• Commodity money: Money that has value in itself, such as gold or silver.
• Fiat money: It is defined as that which is issued by government decree without any physical backing. At present, coins and banknotes are fiat money.
• Fiduciary money or electronic money, which is based on the confidence of economic agents in its value.
• Representative money: It is based on a document that certifies the possession of an asset. Bills of exchange or checks.

Money accounts for approximately 10% of the monetary aggregates, i.e. of the money supply of a developed country.