Money is one of the most common instruments used for the exchange of goods and services. Although the word money generally refers to coins and banknotes, demand deposits and credit cards are also elements that make up the money in the economy. Exchange instruments such as time deposits and government bonds are considered money-like.
It is used as a measure of value, a means of exchange and storage, as an indicator of money value equivalence. This indicator can find monetary or nominal value equivalents. Examples of tangible money are coins, bank guarantees or banknotes, checks, or notes. Money in a bank account or credit approval can be given as examples of nominal money. Money is used as a means of exchange in daily life. The fact that it is valid for other exchanges besides meeting the needs of the people who directly barter is an important difference that distinguishes money from other barter instruments.
Contrary to popular belief, states do not produce money in economies that operate with today's debt-based monetary system. In this system, money means debt. Money is created by banks by borrowing from customers. Since almost all existing currencies are nominal money, it is impossible to exchange cash for gold or foreign currency reserves. The amount of cash used today is controlled by the central bank, which is a private bank authorized to print money in each state and is released to the market through commercial banks. Commercial banks can create more money in the electronic environment than the money received from the central banks and make them available to their customers.
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