What Is MONEY ?

WHAT IS MONEY ?
Anything of value thas serves as generally accepted medium of financial exchange, legal tender for repayment of debt, standard of value, unit of accounting measure, and means to save or store purchasing power. In common usage : cash.



1. Money at Call
Alternative term for loan (such as an overdraft) with or without a fixed maturity date, but which can be recalled anytime (often on a 24 hour notice) by the lender and must be paid in full on the date of demand. Also, the borrower can pay off a demand loan at any time without incurring early payment penalties. Also called call loan or money at call.

2. Money Illusion
Belief that monye (specifically, a currency) represent a constant value.
Curency is tokens used as money in a country. In addition to the metal coins and paper bank notes, modern currency also includes checks drawn on bank accounts, money orders, travelers checks, and will soon include electronic money or digital cash.

3. Money Market Account (MMA)
Special savings-account which pays fluctuating interest rate that, on average, is higher than the interest rate on ordinary savings accounts. However, a certain minium credit balance must be maintained in an MMA , and only a limited number of checks can be written on it in a month although, usually, there is no limit on transfer of funds over the bank's counter or through automated teller machines (ATM). An MMA balance is covered under deposit insurance like an ordinary savings account balance.






4. Money Market Certificate (MMC)
US non-negotiable certificate of deposit (CD) with a minimum denomination of $2,500 and minimum original maturity of seven days, paying an interest rate set by the issuing financial institution.



5. Money Market Instruments
Short-term (Usually one year or less, often used to refer to bonds or loans. opposite of long-term.), high grade (low risk) financial instruments such as bankers' acceptance, certificates of deposit (CDs), commercial paper, and treasury bills.

6. Money Market Investment
Short-term (typical maturity is less than one year), highly liquid government or corporate debt instrument (such as bankers' acceptance, promissory notes, treasury bills) traded in money markets.


7.Money Market Fund (MMF)
Alternative term for money market mutual fund (MMF).
Open ended mutual fund that invests in highly liquid short-term financial instruments (with maturities typically 90 days to less than one year) such as negotiable certificates of deposit (CDs), commercial paper, and treasury bills; and pays money market account (MMA) rates of interest. MMFs differ from other mutual funds in that their market value remains constant at $1 per share, only the interest rate paid by them fluctuates. They also offer check writing privileges, but are not protected under the deposit insurance schemes. Also called money market mutual fund.

8. Money Market Rate
Interest rate on money market instruments.
Annual cost of credit or debt-capital computed as the percentage ratio of interest to the principal. Each bank can determine its own interest rate on loans but, in practice, local rates are about the same from bank to bank. In general, interest rates rise in times of inflation, greater demand for credit, tight money supply, or due to higher reserve requirements for banks. A rise in interest rates for any reason tends to dampen business activity (because credit becomes more expensive) and the stockmarket (because investors can get better returns from bank deposits or newly issued bonds than from buying shares).