Time-Based Currency

DEFINITION of 'Time-Based Currency'

A currency whose value is based on one man-hour of labor. A time-based currency is an alternative form of currency most often found in communities that place value on volunteerism and social capital. It has no monetary value.

BREAKING DOWN 'Time-Based Currency'

Time-based currencies are found in time banks, which are groups of individuals and businesses that use their "earnings" of the alternative currency to get others to help them with projects. Because time-based currencies have no value outside of man-hours, individuals and organizations are unlikely to hoard them.

RELATED TERMS
  1. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  2. Currency Appreciation

    An increase in the value of one currency in terms of another. ...
  3. Currency

    Currency is a generally accepted form of money, including coins ...
  4. Counter Currency

    The currency used as the reference or second currency in a currency ...
  5. Currency Pairs

    Two currencies with exchange rates that are traded in the retail ...
  6. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
Related Articles
  1. Forex Education

    Forex Tutorial: Reading a Forex Quote and Understanding the Jargon

    One of the biggest sources of confusion for those new to the currency market is the standard for quoting currencies. In this section, we'll go over currency quotations and how they work in ...
  2. Personal Finance

    The Pros And Cons Of Volunteerism In America

    Here is a rundown of some of the positives and negatives of volunteering in the U.S.
  3. Your Practice

    Paying Advisors: What the Young and Wealthy Prefer

    The next generation of ultra-high-net-worth investors wants the payment structures for financial advice to evolve. Here's how.
  4. Forex Fundamentals

    The Effects Of Currency Fluctuations On The Economy

    Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. The exchange rate of one currency versus the other is influenced by ...
  5. Term

    Why Countries Keep Reserve Currency

    Central banks and financial institutions hold large amounts of foreign money as their reserve currency.
  6. Forex Education

    Top 5 Hardest-Hit Currencies

    The value of a country's currency is dependent on many factors that will cause it to fluctuate, relative to other world currencies.
  7. Forex Education

    4 Of The Most Popular Traded Currencies

    Every day, trillions of dollars trade in the forex market. Here are a few of the most popular currencies, and some characteristics for each.
  8. Stock Analysis

    Making A Play With Currency ETFs

    For investors looking for alternatives for their portfolios, currency remains a compelling addition. The exchange-traded fund boom has made it easy for regular retail investors to add currencies ...
  9. Forex Education

    Effects Of Currency Fluctuations On The Economy

    Huge movements in a currency can dictate an economy’s fortunes. In a manner of speaking, the currency becomes the tail that wags the dog.
  10. Forex Education

    Interest Rate and Currency Value And Exchange Rate

    In general, higher interest rates in one country tend to increase the value of its currency.
RELATED FAQS
  1. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
  2. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  3. What is foreign exchange?

    Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's ... Read Answer >>
  4. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
  5. How often do exchange rates fluctuate?

    Exchange rates float freely against one another, which means they are in constant fluctuation. Currency valuations are determined ... Read Answer >>
  6. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center