Money is the ultimate virtual currency that has no physical form. Money is a means of exchange that enables one to perform transactions easily. Money is generally regarded as any verifiable account or asset which is typically accepted as payment in exchange for goods and/or services and settlement of debts, including taxes, in a specific country or cultural context. In simple terms, money is the medium through which you can make your will, decide your will or request to have something done.
The need to know about how much money there is, where it’s available and how to get at it comes up regularly in situations where you have to make major purchases or are paying off debts. There’s money available to you in the form of bank overdrafts and even credit cards, which you can use to take advantage of offers on items like holidays, cars, houses etc. It’s very easy to get too much money on credit cards because banks make a habit of rolling over balance amounts. So, you end up with a bunch more interest charges that eat away at whatever savings you might have made. So, if you want to know how much money there is, ask a professional bank manager how much bank overdrafts are available to you.
Money is generally accepted at any place where you find money, but it isn’t usually physically present in that environment. So, if you want to purchase a genuine diamond engagement ring in Botswana, you’ll be able to take out a credit card and go to a reputable store with a good reputation and pay in your local currency, even though the ring may be sold in US dollars. You won’t be able to physically feel or touch the stone, but you can convert the money into your currency of choice.
Money flows through many different channels and each of those channels has its own set of transaction costs. For example, when you sell something you have an asset, which is typically your labor or product, and you exchange it for cash (a sail) by paying the cash price plus the transaction costs, which include brokerage, payment channels, and conversion rates. The cost of making the sale itself is called the transaction cost. Some of the transaction costs, like brokerage, are unavoidable, but other costs can be avoided by planning ahead. For example, if you’re going to travel to Botswana, you can eliminate the cost of a broker and exchange your currency in that country using your credit card.
How MONEY travels between countries is called trade. Typical exchanges involve the transfer of a principal (the value of a bond, stock, or other asset that is exchanged for a note or currency) and a coupon (also called a deferred payment). Any money that was used in the transaction is called circulating currency. Money that was saved during the time of the transaction is called saving currency. If you want to buy some goods from Botswana, you can use your saving account to make the purchase and use the money that you’ve saved to pay for the goods once they’re received.
The use-value or deferred payment ensures that you will get your money back at the end of the transaction. Saving is particularly important if you don’t live close to the place where the goods are located. A major advantage of saving money abroad is the tax benefits that you’ll receive. When you exchange your domestic currency for a foreign currency, both the rate of exchange and the tax on the foreign transaction costs are usually very low.