Definition of Currency

Currency is a generally accepted form of money, consisting of paper notes and coins. Currency is issued by the government with its circulation in the economy. Currency is used as a medium of exchange for services and goods and it is the basis of a trade. Similarly, it refers to the money that is legally designated by the governing body for trading or exchange of commodities.

Explanation of Currency

Every country has its own currency. For example, Japanese official currency is the Yen, and the American official currency is the Dollar. There is an exception with Euro because it is used as the currency in several European countries. People also make investments in currency in the foreign exchange market, which is one of the most heavily traded markets in the world