Paper Money

Filed Under » ,
Dictionary Says

Definition of 'Paper Money'

A country's official, paper currency that is circulated for transaction-related purposes. The printing of paper money is typically regulated by a country's central bank/treasury in order to keep the flow of money in line with monetary policy. Paper money tends to be updated with new versions that contain security features that seek to make it more difficult for counterfeiters to create illegal copies.  
Investopedia Says

Investopedia explains 'Paper Money'

The first recorded use of paper money was believed to be in China during the 7th century A.D. as a means of reducing the need to carry heavy and cumbersome strings of metallic coins to conduct transactions. Similar to making a deposit at a modern bank, individuals would transfer their coins to a trustworthy party and then receive a note denoting how much money they had deposited. The note could then be redeemed for currency at a later date.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Fiat Money

    Currency that a ...
  2. Currency

    A generally ...
  3. Money

    An ...
  4. Lawful Money

    Any form of ...
  5. Hard Money

    1. Funding by a ...
  6. Notgeld

    A German term ...
  7. Worn Currency

    Currency notes ...
  8. U.S. Bureau Of Engraving And ...

    A U.S. ...
  9. ANG (Netherlands Antilles Guilder)

    The currency ...
  10. SIT

    In currencies, ...

Articles Of Interest

  1. What Is Money?

    It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created?
  2. The History Of Money: From Barter To Banknotes

    Money has been a part of human history for at least 3,000 years. Learn how it evolved.
  3. The Gold Standard Revisited

    Think the value of gold is unshakable? Read this chronicle of its rise and fall.
  4. The History Of Money: Currency Wars

    Find out how conflicts have changed the role money plays in our lives.
  5. An Introduction To Complementary Currencies

    There are alternatives to national currencies. Discover complementary currencies and how they work.
  6. Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  7. The Currency Board: Understanding The Government's Bank

    Currency board, central bank - what's the difference? Find out more about this little-known monetary authority.
  8. 5 Reports That Affect The British Pound

    The pound is one of the world's most popular traded currencies, and is heavily impacted by these factors.
  9. How Inflation-Fighting Techniques Affect The Currency Market

    Central banks use these strategies to calm inflation, but they can also provide longer-term clues for forex traders.
  10. Introduction To The Chinese Banking System

    As China steps into a greater role in the global economic system, their banking system continues to evolve.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center