Currency

A currency is a standardization of money in any form, in use as a medium of exchange, for example banknotes and coins. In this regard, the Credit Argent (CA), Xinhao Yuan, and Novogaardian Crown are all examples of fiat currencies - meaning currencies which are not backed by any real commodity (such as gold, silver, oil, etc), but backed by confidence in the strength of the institution or government that issues it. Other forms of currency include commodity money - meaning a currency where its value is derived from the materials from which it is produced (e.g a gold coin), and representative money - where the currency that is in circulation represents the wealth of a commodity backing it (e.g a currency pegged to the price of gold).