Majandusvaluuta

Majandusvaluuta refers to the medium of exchange used within an economic system. It is the generally accepted item that facilitates transactions for goods and services. In most modern economies, this role is fulfilled by fiat money, which derives its value from government decree rather than intrinsic worth. Historically, various forms of currency have been used, including commodity money such as precious metals (gold, silver) or shells, and representative money, which was backed by a claim on a commodity.

The primary functions of economic currency are to serve as a unit of account, a store of value, and a medium of exchange. As a unit of account, it provides a common measure for the value of different goods and services, simplifying price comparisons. As a store of value, it allows individuals to save purchasing power for future use, although its effectiveness can be diminished by inflation. As a medium of exchange, it overcomes the inefficiencies of bartering by providing a universally accepted means of payment.

The management and issuance of economic currency are typically the responsibility of a country's central bank. This institution controls the money supply, influences interest rates, and aims to maintain price stability. The stability and trustworthiness of a nation's currency are crucial for its economic health and its standing in international trade. Fluctuations in currency value can impact import and export costs, foreign investment, and the overall economic confidence within a country.