Complementary Currency - CC

AAA

DEFINITION of 'Complementary Currency - CC'

A currency used in combination with other currencies, such as a national currency, whose value is not based on traditional methods. A complementary currency is not considered legal tender and does not replace a national currency, but it can be used to encourage consumers and businesses to alter their behaviors. A complementary currency can also integrate time or real sources into its scale.

INVESTOPEDIA EXPLAINS 'Complementary Currency - CC'

An example of a complementary currency is the Toronto dollar, which is backed by the Canadian dollar and can be freely exchanged. The Toronto dollar is used to benefit the community by allocating a portion of the dollars spent to programs aimed at the poor and homeless. This currency is primarily used to buy and sell goods and services, rather than being traded on the open market.

RELATED TERMS
  1. Exchange Rate

    The price of a nation’s currency in terms of another currency. ...
  2. Saber Currency

    A proposed Brazilian currency that would be handed out by the ...
  3. Functional Currency

    The primary type of money that a company uses in its business ...
  4. Currency Symbol

    A graphical symbol used as a substitute for the actual name of ...
  5. Currency

    A generally accepted form of money, including coins and paper ...
  6. Exotic Currency

    A foreign exchange term for a thinly traded currency. Exotic ...
Related Articles
  1. Microfinance: What It Is And How To ...
    Entrepreneurship

    Microfinance: What It Is And How To ...

  2. An Introduction to Microfinance
    Insurance

    An Introduction to Microfinance

  3. Standard Of Living Vs. Quality Of Life
    Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

  4. Are We Losing The Middle Class?
    Personal Finance

    Are We Losing The Middle Class?

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center