Michael on Nostr: 1. **Money:** Money is a broad term that refers to any medium of exchange that can be ...

1. **Money:** Money is a broad term that refers to any medium of exchange that can be used to pay for goods and services and to settle debts. The key functions of money are as a medium of exchange, a unit of account, a store of value, and sometimes, a standard of deferred payment. Money can take various forms, including physical forms (like coins and banknotes) and digital forms (such as bank deposits or digital currencies). Money's essence lies in its general acceptability by a community or economy.

2. **Currency:** Currency is a specific type of money that is in physical form and is issued by a government or a central authority. It includes paper notes and coins that circulate within an economy. Currency is the tangible form of money that is used for the exchange of goods and services. While all currency is considered money when it is used in the economy as a medium of exchange, not all money is currency because money can also exist in digital or other non-physical forms.

In summary, currency is a subset of money. Money encompasses a wide range of mediums including currency, but also includes other forms of financial assets and mechanisms that serve the functions of money, such as checks, bank deposits, and electronic money. Currency specifically refers to physical tokens such as coins and banknotes that are issued by a central bank or governmental authority and are used in transactions.