Hard Money

AAA

DEFINITION of 'Hard Money'

1. Funding by a government or organization that is repetitive, rather than a one-time grant. Examples include ongoing government daycare subsidies or firms that pay annual scholarships to post-secondary students.

2. Describes gold/silver/platinum (bullion) coins. A government that uses a hard money policy backs the value of the currency it uses with a hard, tangible and lasting material that will retain its relative value over time.

INVESTOPEDIA EXPLAINS 'Hard Money'

1. Governments and organizations prefer hard money because it provides a predictable stream of funds.

2. For example, in the early 1900s, the U.S. dollar was backed by the value of gold. Today, most countries use fiat money, which is made legal tender by government decree but has no intrinsic value of its own.

RELATED TERMS
  1. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Worn Currency

    Currency notes that are torn, damaged or badly soiled. Banks ...
  3. Currency

    A generally accepted form of money, including coins and paper ...
  4. Hard Currency

    A currency, usually from a highly industrialized country, that ...
  5. Gold Standard

    A monetary system in which a country's government allows its ...
  6. Bullion

    Gold and silver that is officially recognized as being at least ...
Related Articles
  1. The Gold Standard Revisited
    Budgeting

    The Gold Standard Revisited

  2. What Is Money?
    Economics

    What Is Money?

  3. What is the difference between
    Investing

    What is the difference between "hard ...

  4. What Is Fiscal Policy?
    Economics

    What Is Fiscal Policy?

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center