Money, Motivation and Store

How do we know what’s real anymore Last year - none of this was possible for me. Last night – I made this in a few hours.Some of the techniques used in this video were only reserved for the most seasoned Hollywood. Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions. 2024

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment. Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value.[4] Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar. The money supply of a country comprises all currency in circulation (banknotes and coins currently issued) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts). Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries. Etymology The word money derives from the Latin word moneta with the meaning "coin" via French monnaie. The Latin word is believed to originate from a temple of Juno, on Capitoline, one of Rome's seven hills. In the ancient world, Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located.[5] The name "Juno" may have derived from the Etruscan goddess Uni and "Moneta" either from the Latin word "monere" (remind, warn, or instruct) or the Greek word "moneres" (alone, unique). In the Western world a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning "in kind".[6] History Main article: History of money A 640 BC one-third stater electrum coin from Lydia The use of barter-like methods may date back to at least 100,000 years ago, though there is no evidence of a society or economy that relied primarily on barter.[7][8] Instead, non-monetary societies operated largely along the principles of gift economy and debt.[9][10] When barter did in fact occur, it was usually between either complete strangers or potential enemies.[11] Many cultures around the world eventually developed the use of commodity money. The Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley.[12] The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money—often, the shells of the cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[13] It is thought by modern scholars that these first stamped coins were minted around 650 to 600 BC.[14] Song Dynasty Jiaozi, the world's earliest paper money The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors, redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song dynasty. These banknotes, known as "jiaozi", evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money and were used alongside coins. In the 13th century, paper money became known in Europe through the accounts of travellers, such as Marco Polo and William of Rubruck.[15] Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."[16] Banknotes were first issued in Europe by Stockholms Banco in 1661 and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th–19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century, almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold. After World War II and the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the U.S. dollar. The U.S. dollar was in turn fixed to gold. In 1971 the U.S. government suspended the convertibility of the dollar to gold. After this many countries de-pegged their currencies from the U.S. dollar, and most of the world's currencies became unbacked by anything except the governments' fiat of legal tender and the ability to convert the money into goods via payment. According to proponents of modern money theory, fiat money is also backed by taxes. By imposing taxes, states create demand for the currency they issue.[17] Functions See also: Monetary economics Part of a series on Macroeconomics Bank of England Basic concepts Policies Models Related fields Schools People See also icon Money portal icon Business portal vte In Money and the Mechanism of Exchange (1875), William Stanley Jevons famously analyzed money in terms of four functions: a medium of exchange, a common measure of value (or unit of account), a standard of value (or standard of deferred payment), and a store of value. By 1919, Jevons's four functions of money were summarized in the couplet: Money's a matter of functions four, A Medium, a Measure, a Standard, a Store.[18] This couplet would later become widely popular in macroeconomics textbooks.[19] Most modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.[4][20][21] There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange conflicts with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.[22] Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term "financial capital" is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender. Medium of exchange Main article: Medium of exchange When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the inability to permanently ensure "coincidence of wants". For example, between two parties in a barter system, one party may not have or make the item that the other wants, indicating the non-existence of the coincidence of wants. Having a medium of exchange can alleviate this issue because the former can have the freedom to spend time on other items, instead of being burdened to only serve the needs of the latter. Meanwhile, the latter can use the medium of exchange to seek for a party that can provide them with the item they want. Measure of value Main article: Unit of account A unit of account (in economics)[23] is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems like double-entry bookkeeping. Standard of deferred payment Main article: Standard of deferred payment While standard of deferred payment is distinguished by some texts,[22] particularly older ones, other texts subsume this under other functions.[4][20][21][clarification needed] A "standard of deferred payment" is an accepted way to settle a debt—a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due to inflation and deflation, and for sovereign and international debts via debasement and devaluation. Store of value Main article: Store of value To act as a store of value, money must be able to be reliably saved, stored, and retrieved—and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.[4][failed verification] Properties The functions of money are that it is a medium of exchange, a unit of account, and a store of value.[24] To fulfill these various functions, money must be:[25] Fungible: its individual units must be capable of mutual substitution (i.e., interchangeability). Durable: able to withstand repeated use. Divisible: divisible to small units. Portable: easily carried and transported. Acceptable: most people must accept the money as payment Scarce: its supply in circulation must be limited.[25] Money supply Main article: Money supply Money Base, M1 and M2 in the U.S. from 1981 to 2012 Printing paper money at a printing press in Perm A person counts a bundle of different Swedish banknotes. In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits, and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate. Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments. The precise definition of M1, M2, etc. may be different in different countries. Another measure of money, M0, is also used. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks. Creation of money Main article: Money creation In current economic systems, money is created by two procedures:[citation needed] Legal tender, or narrow money (M0) is the cash created by a Central Bank by minting coins and printing banknotes. Bank money, or broad money (M1/M2) is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. Currently, bank money is created as electronic money. Bank money, whose value exists on the books of financial institutions and can be converted into physical notes or used for cashless payment, forms by far the largest part of broad money in developed countries.[26][27][28] In most countries, the majority of money is mostly created as M1/M2 by commercial banks making loans. Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money (M0) to create new loans and deposits.[29] Market liquidity Main article: Market liquidity "Market liquidity" describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognized and accepted as a common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter. Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money. Types Commodity Main article: Commodity money A 1914 British gold sovereign Many items have been used as commodity money such as naturally scarce precious metals, conch shells, barley, beads, etc., as well as many other things that are thought of as having value. Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity.[30] Examples of commodities that have been used as mediums of exchange include gold, silver, copper, rice, Wampum, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy, etc. These items were sometimes used in a metric of perceived value in conjunction with one another, in various commodity valuation or price system economies. The use of commodity money is similar to barter, but a commodity money provides a simple and automatic unit of account for the commodity which is being used as money. Although some gold coins such as the Krugerrand are considered legal tender, there is no record of their face value on either side of the coin. The rationale for this is that emphasis is laid on their direct link to the prevailing value of their fine gold content.[31] American Eagles are imprinted with their gold content and legal tender face value.[32] Representative Main article: Representative money In 1875, the British economist William Stanley Jevons described the money used at the time as "representative money". Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.[33] Fiat Main article: Fiat money Gold coins are an example of legal tender that are traded for their intrinsic value, rather than their face value. Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat). Usually, the government declares the fiat currency (typically notes and coins from a central bank, such as the Federal Reserve System in the U.S.) to be legal tender, making it unlawful not to accept the fiat currency as a means of repayment for all debts, public and private.[34][35] Some bullion coins such as the Australian Gold Nugget and American Eagle are legal tender, however, they trade based on the market price of the metal content as a commodity, rather than their legal tender face value (which is usually only a small fraction of their bullion value).[32][36] Fiat money, if physically represented in the form of currency (paper or coins), can be accidentally damaged or destroyed. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction. For example, the U.S. government will replace mutilated Federal Reserve Notes (U.S. fiat money) if at least half of the physical note can be reconstructed, or if it can be otherwise proven to have been destroyed.[37] By contrast, commodity money that has been lost or destroyed cannot be recovered. Coinage Main article: Coin These factors led to the shift of the store of value being the metal itself: at first silver, then both silver and gold, and at one point there was bronze as well. Now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics). In most major economies using coinage, copper, silver, and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military, and backing of state activities. Silver coins were used for midsized transactions, and as a unit of account for taxes, dues, contracts, and fealty, while copper coins represented the coinage of common transaction. This system had been used in ancient India since the time of the Mahajanapadas. In Europe, this system worked through the medieval period because there was virtually no new gold, silver, or copper introduced through mining or conquest.[citation needed] Thus the overall ratios of the three coinages remained roughly equivalent. Paper Main article: Banknote Huizi currency, issued in 1160 In premodern China, the need for credit and for circulating a medium that was less of a burden than exchanging thousands of copper coins led to the introduction of paper money. This economic phenomenon was a slow and gradual process that took place from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes that were valid for temporary use in a small regional territory. In the 10th century, the Song dynasty government began circulating these notes amongst the traders in their monopolized salt industry. The Song government granted several shops the sole right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still regionally valid and temporary; it was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The already widespread methods of woodblock printing and then Pi Sheng's movable type printing by the 11th century was the impetus for the massive production of paper money in premodern China. Paper money from different countries At around the same time in the medieval Islamic world, a vigorous monetary economy was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar). Innovations introduced by economists, traders and merchants of the Muslim world include the earliest uses of credit,[38] cheques, savings accounts, transactional accounts, loaning, trusts, exchange rates, the transfer of credit and debt,[39] and banking institutions for loans and deposits.[39][need quotation to verify] In Europe, paper money was first introduced in Sweden in 1661. Sweden was rich in copper, thus, because of copper's low value, extraordinarily big coins (often weighing several kilograms) had to be made. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in the paper. However, these advantages are held within their disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army. For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At this time both silver and gold were considered legal tender, and accepted by governments for taxes. However, the instability in the ratio between the two grew over the 19th century, with the increase both in the supply of these metals, particularly silver, and of trade. This is called bimetallism and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied the efforts of inflationists. Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback, to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. Banknotes of different currencies with a face value of 5000 By 1900, most of the industrializing nations were on some form of a gold standard, with paper notes and silver coins constituting the circulating medium. Private banks and governments across the world followed Gresham's law: keeping gold and silver paid but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early part of the 20th century and continuing across the world until the late 20th century, when the regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971. No country anywhere in the world today has an enforceable gold standard or silver standard currency system. Commercial bank Main article: Demand deposit A check, used as a means of converting funds in a demand deposit to cash Commercial bank money or demand deposits are claims against financial institutions that can be used for the purchase of goods and services. A demand deposit account is an account from which funds can be withdrawn at any time by check or cash withdrawal without giving the bank or financial institution any prior notice. Banks have the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person, via checks or bank drafts, using automatic teller machines (ATMs), or through online banking.[40] Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand - a practise known as fractional-reserve banking.[41] Commercial bank money differs from commodity and fiat money in two ways: firstly it is non-physical, as its existence is only reflected in the account ledgers of banks and other financial institutions, and secondly, there is some element of risk that the claim will not be fulfilled if the financial institution becomes insolvent. The money multiplier theory presents the process of creating commercial bank money as a multiple (greater than 1) of the amount of base money created by the country's central bank, the multiple itself being a function of the legal regulation of banks imposed by financial regulators (e.g., potential reserve requirements) beside the business policies of commercial banks and the preferences of households - factors which the central bank can influence, but not control completely.[42] Contemporary central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create.[43][44][45] Digital or electronic Main article: Digital money The development of computer technology in the second part of the twentieth century allowed money to be represented digitally. By 1990, in the United States all money transferred between its central bank and commercial banks was in electronic form. By the 2000s most money existed as digital currency in bank databases.[46] In 2012, by number of transaction, 20 to 58 percent of transactions were electronic (dependent on country).[47] Anonymous digital currencies were developed in the early 2000s. Early examples include Ecash, bit gold, RPOW, and b-money. Not much innovation occurred until the conception of Bitcoin in 2008, which introduced the concept of a decentralised currency that requires no trusted third party.[48] Monetary policy Main article: Monetary policy US dollar banknotes When gold and silver were used as money, the money supply could grow only if the supply of these metals was increased by mining. This rate of increase would accelerate during periods of gold rushes and discoveries, such as when Columbus traveled to the New World and brought back gold and silver to Spain, or when gold was discovered in California in 1848. This caused inflation, as the value of gold went down. However, if the rate of gold mining could not keep up with the growth of the economy, gold became relatively more valuable, and prices (denominated in gold) would drop, causing deflation. Deflation was the more typical situation for over a century when gold and paper money backed by gold were used as money in the 18th and 19th centuries. Modern-day monetary systems are based on fiat money and are no longer tied to the value of gold. The amount of money in the economy is influenced by monetary policy, which is the process by which a central bank influences the economy to achieve specific goals. Often, the goal of monetary policy is to maintain low and stable inflation, directly via an inflation targeting strategy,[49] or indirectly via a fixed exchange rate system against a major currency with a stable inflation rate.[50] In some cases, the central bank may pursue various supplementary goals. For example, it is clearly stated in the Federal Reserve Act that the Board of Governors and the Federal Open Market Committee should seek "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."[51] A failed monetary policy can have significant detrimental effects on an economy and the society that depends on it. These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy. This happened in Russia, for instance, after the fall of the Soviet Union. Monetary policy strategies have changed over time.[52] Some of the tools used to conduct contemporary monetary policy include:[53] changing the interest rate at which the central bank loans money to (or borrows money from) the commercial banks open market operations including currency purchases or sales forward guidance, i.e. publishing forecasts to communicate the likely future course of monetary policy raising or lowering bank reserve requirements In the U.S., the Federal Reserve is responsible for conducting monetary policy, while in the eurozone the respective institution is the European Central Bank. Other central banks with a significant impact on global finances are the Bank of Japan, People's Bank of China and the Bank of England. During the 1970s and 1980s monetary policy in several countries was influenced by an economic theory known as monetarism. Monetarism argued that management of the money supply should be the primary means of regulating economic activity. The stability of the demand for money prior to the 1980s was a key finding of Milton Friedman and Anna Schwartz[54] supported by the work of David Laidler,[55] and many others. It turned out, however, that maintaining a monetary policy strategy of targeting the money supply did not work very well: The relation between money growth and inflation was not as tight as expected by monetarist theory, and the short-run relation between the money supply and the interest rate, which is the chief instrument through which the cental bank can influence output and inflation, was unreliable. Both problems were due to unpredictable shifts in the demand for money. Consequently, starting in the early 1990s a fundamental reorientation took place in most major central banks, starting to target inflation directly instead of the money supply and using the interest rate as their main instrument.[56] Locality President J. K. Paasikivi illustrated in a former Finnish 10 mark banknote from 1980 The definition of money says it is money only "in a particular country or socio-economic context". In general, communities only use a single measure of value, which can be identified in the prices of goods listed for sale. There might be multiple media of exchange, which can be observed by what is given to purchase goods ("medium of exchange"), etc. In most countries, the government acts to encourage a particular forms of money, such as requiring it for taxes and punishing fraud. Some places do maintain two or more currencies, particularly in border towns or high-travel areas. Shops in these locations might list prices and accept payment in multiple currencies. Otherwise, foreign currency is treated as a financial asset in the local market. Foreign currency is commonly bought or sold on foreign exchange markets by travelers and traders. Communities can change the money they use, which is known as currency substitution. This can happen intentionally, when a government issues a new currency. For example, when Brazil moved from the Brazilian cruzeiro to the Brazilian real. It can also happen spontaneously, when the people refuse to accept a currency experiencing hyperinflation (even if its use is encouraged by the government). The money used by a community can change on a smaller scale. This can come through innovation, such as the adoption of cheques (checks). Gresham's law says that "bad money drives out good". That is, when buying a good, a person is more likely to pass on less-desirable items that qualify as "money" and hold on to more valuable ones. For example, coins with less silver in them (but which are still valid coins) are more likely to circulate in the community. This may effectively change the money used by a community. The money used by a community does not have to be a currency issued by a government. A famous example of community adopting a new form of money is prisoners-of-war using cigarettes to trade.[57] Financial crimes Counterfeiting Main article: Counterfeit money Counterfeit money is imitation currency produced without the legal sanction of the state or government. Producing or using counterfeit money is a form of fraud or forgery. Counterfeiting is almost as old as money itself. Plated copies (known as Fourrées) have been found of Lydian coins which are thought to be among the first western coins.[58] Historically, objects that were difficult to counterfeit (e.g. shells, rare stones, precious metals) were often chosen as money.[59] Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver. A form of counterfeiting is the production of documents by legitimate printers in response to fraudulent instructions. During World War II, the Nazis forged British pounds and American dollars. Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real U.S. dollar. There has been significant counterfeiting of Euro banknotes and coins since the launch of the currency in 2002, but considerably less than for the U.S. dollar.[60] Money laundering Main article: Money laundering Money laundering is the process in which the proceeds of crime are transformed into ostensibly legitimate money or other assets. However, in several legal and regulatory systems the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing, tax evasion, and evading of international sanctions.

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released.

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released. 2024

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released.

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released. 2024

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020.[21] Legal issues In 2012, rapper Curren$y sued Dash for $1.5 million for releasing his music without permission.[22] Dash's attorney released a statement that Dash released the music on fair grounds.[23] In 2014, Dash was ordered to pay Linda Williams, the mother of his son Boogie, $50,000 for causing her to be prosecuted on harassment charges in 2009.[24] In April 2015, Dash's ex-wife, Rachel Roy, accused him of domestic abuse and filed for a restraining order.[18] Roy was awarded sole custody of their daughters. The court granted Roy and her daughters with a three-year restraining order against Dash.[25] Days later, Dash filed a $2.5 million claim against Roy in asserted damage for allegedly mishandling their joint fashion business, Royale Etenia.[26] In 2018, Dash settled a suit he filed against director Lee Daniels requesting $5 million to recoup a $2 million investment with interest.[27] Lee had received financial support from Dash early in his career, and reportedly failed to repay him despite his subsequent success.[28] In November 2019, Dash was arrested for failing to pay more than $400,000 in child support. Dash was in New York City for an unrelated Federal Court appearance when he was arrested for two warrants. The first warrant was issued in April 2015 in the Supreme Court in New York County case of Cindy Morales; he owed $62,553 since 2012.[29] The second warrant was issued in March 2019 in the Bronx Family Court case of Rachel Roy. He was ordered to pay her $341,991 and $25,000 for attorney fees in 2015.[30][29] Dash reportedly paid more than $1 million to be released.

Damon Anthony Dash (born May 3, 1971) is an American entrepreneur and record executive.[4] Dash is best known as co-founder of Roc-A-Fella along with Jay-Z and Kareem Burke.[5] Early life Born in New York City, Dash swept the floors of a local barbershop and sold newspapers in order to buy sneakers and shirts as a teenager. Dash "learned to hustle", in his own words, from the example of his mother, who died of an asthma attack when he was 15.[6] The same year, Dash was diagnosed with type 1 diabetes.[7] "Before I was diagnosed... I went about a month or two just going to the bathroom non-stop and losing weight," Dash recalled. "Magic Johnson had just been diagnosed with AIDS, so that's what I thought I had. I was scared to even go to the doctor. I thought I was going to die."[7] Career Dash served as Jay-Z's manager and business partner at Roc-A-Fella Records, and in 1999, he organized a tour for Jay-Z which made $19 million.[8] Their relationship soured as a result of two subsequent events. The first was when Roc-A-Fella Records was purchased by Def Jam Recordings (which had previously only owned half of the company) in 2004, after which Jay-Z agreed to take a job as Def Jam's president. Then, in late 2005, Jay-Z bought Dash out of his stake in Rocawear.[9] In April 2014, it was announced that Dash is involved with Blind Debit, a fingerprint payment application being developed by Dez White.[10] Dash founded DD172, a media collective which encompasses: America Nu, a magazine; VNGRD79, a web design firm; BluRoc Records, a record label division.[11] It also includes an art gallery.[12] Personal life Dash met R&B singer Aaliyah in New York City in the summer of 2000 through his accountant,[13][14] and dated her until her death on August 25, 2001, in a plane crash in The Bahamas.[15] Though they were not formally engaged, in interviews given after Aaliyah's death, Dash stated that the couple had planned to marry.[16] In 2005, Dash married fashion designer Rachel Roy, whom he had dated prior to his relationship with Aaliyah. They met when she was working as an intern at Rocawear. Together they have two daughters, Ava Dash (born December 7, 1999) and Tallulah Dash (born May 14, 2008).[17] Following their divorce in 2009, they had a bitter custody battle.[18] Dash has a son, Dame "Boogie" Dash (born November 28, 1991), with former girlfriend Linda Williams.[17] Boogie stars in the reality television show Growing Up Hip Hop.[19] He also has another son, Lucky, born in 2004 with Cindy Morales.[17][20] Dash and his fiancée Raquel Horn have a son, Dusko Dash, born on November 14, 2020 kid kids girl girls boy boys youth

Drake and other celebrities in one big collaboration. Aubrey Drake Graham (/ɔːˈbriː/ aw-BREE; born October 24, 1986), known professionally as Drake, is a Canadian rapper and singer. An influential figure in contemporary popular music, Drake has been credited with popularizing singing and R&B sensibilities in hip hop artists. Gaining recognition by starring as Jimmy Brooks in the CTV teen drama series Degrassi: The Next Generation (2001–08), he pursued a recording career in 2006, releasing his debut mixtape Room for Improvement in February of that year. He followed up with the mixtapes Comeback Season (2007) and So Far Gone (2009) before signing with Young Money Entertainment.[4] Each of Drake's albums have topped the US Billboard 200 and Canadian Albums Chart; his first three, Thank Me Later (2010), Take Care (2011) and Nothing Was the Same (2013) were met with critical and commercial success, propelling him to the forefront of hip hop.[5] His fourth album, Views (2016), saw exploration of dancehall and stood atop the Billboard 200 for 13 non-consecutive weeks—making it the first album by a male artist to do so in over a decade—and featured the international hit singles "Hotline Bling" and "One Dance" (featuring WizKid and Kyla); the latter has been credited with helping the popularization of the dancehall and Afrobeats genres in contemporary pop music.[6][7] In 2018, Drake released the double album Scorpion, which contained the US Billboard Hot 100 number-one singles "God's Plan", "Nice for What", and "In My Feelings".[8] Drake's sixth album, Certified Lover Boy (2021), achieved nine top 10 hits on the Hot 100, briefly setting the record for most US top-ten hits from one album, with its lead single "Way 2 Sexy" (featuring Future and Young Thug) reaching number one.[9] In 2022, Drake released the house-inspired album Honestly, Nevermind and the collaborative album, Her Loss, with 21 Savage. His eighth album, For All the Dogs (2023) yielded the number-one singles "Slime You Out" (featuring SZA) and "First Person Shooter" (featuring J. Cole), with which he tied Michael Jackson for the most number-one singles by a male solo artist.[10] Known for frequent accompanying releases to his albums, Drake achieved critical and commercial success with the mixtapes If You're Reading This It's Too Late (2015) and More Life (2017). As an entrepreneur, Drake founded the OVO Sound record label with longtime collaborator 40 in 2012. In 2013, Drake became the "global ambassador" of the Toronto Raptors, joining their executive committee and later obtaining naming rights to their practice facility OVO Athletic Centre. In 2016, he began collaborating with Brent Hocking on the bourbon whiskey Virginia Black.[11] Drake heads the OVO fashion label and the Nocta collaboration with Nike, and founded the production company DreamCrew and the fragrance house Better World. In 2018, Drake was reportedly responsible for 5 percent (CAD$440 million) of Toronto's CAD$8.8 billion annual tourism income.[12] In 2022, he obtained partial ownership of Italian soccer club A.C. Milan. Among the world's best-selling music artists, with over 170 million records sold, Drake is ranked as the highest-certified digital singles artist in the United States by the RIAA.[13] He has won five Grammy Awards, six American Music Awards, a record 34 Billboard Music Awards, two Brit Awards, and three Juno Awards. Drake has achieved 13 number-one hits on the Billboard Hot 100 (14 counting "Sicko Mode") and holds further Hot 100 records, including the most top 10 singles (76), and the most charted songs (321),[14] From 2018 to 2023, he held the record for the most simultaneously charted songs in one week (27), the most Hot 100 debuts in one week (22);[15] and held the most continuous time on the Hot 100 (431 weeks).[a] He additionally has the most number-one singles on the R&B/Hip-Hop Airplay, Hot R&B/Hip-Hop Songs, Hot Rap Songs, and Rhythmic Airplay charts. Early life For high school, Drake attended Forest Hill Collegiate Institute (left) and Vaughan Road Academy (right). Aubrey Drake Graham[16] was born on October 24, 1986, in Toronto, Ontario. His father, Dennis Graham, is an African-American drummer from Memphis who once performed with musician Jerry Lee Lewis.[17][18] His mother, Sandra "Sandi" Graham (née Sher), is a Canadian Ashkenazi Jew, who worked as an English teacher and florist.[19][20][21][22][23] Graham performed at Club Bluenote in Toronto, where he met Sandra, who was in attendance.[18] Drake is a dual citizen of the United States and Canada, the former derived from Graham.[24][25][26] In his youth, he attended a Jewish day school and became a bar mitzvah.[27][28] Drake's parents divorced when he was five years old. After the divorce, he and his mother remained in Toronto; his father returned to Memphis, where he was incarcerated for a number of years on drug-related charges.[29] Graham's limited finances and legal issues caused him to remain in the U.S. until Drake's early adulthood. Prior to his arrest, Graham would travel to Toronto and bring Drake to Memphis every summer.[30][31][32] Graham claimed in an interview that Drake's assertions of him being an absent father were embellishments used to sell music,[33] which Drake vehemently denies.[34] Drake was raised in two neighbourhoods. He lived on Weston Road in Toronto's working-class west end until grade six and attended Weston Memorial Junior Public School until grade four, playing minor hockey with the Weston Red Wings.[31][35] Drake was a promising right winger, reaching the Upper Canada College hockey camp, but left at the behest of his mother following a vicious cross-check to his neck during a game by an opposing player.[36] He moved to one of the city's affluent neighbourhoods, Forest Hill, in 2000.[37][38] When asked about the move, Drake replied, "[We had] a half of a house we could live in. The other people had the top half, we had the bottom half. I lived in the basement, my mom lived on the first floor. It was not big, it was not luxurious. It was what we could afford."[39] Demonstrating an affinity for the arts, at age 10, Drake appeared in a comedic sketch which aired during the 1997 NHL Awards, featuring a riff of Martin Brodeur and Ron Hextall and their record as being the only goalies to have scored multiple goals.[40] He attended Forest Hill Collegiate Institute for high school,[41] and attended Vaughan Road Academy in Toronto's multicultural Oakwood–Vaughan neighbourhood; Drake described Vaughan Road Academy as "not by any means the easiest school to go to."[31] During his teenage years, Drake worked at a now-closed Toronto furniture factory owned by his maternal grandfather, Reuben Sher.[42] Drake said he was bullied at school for his racial and religious background,[43] and upon determining that his class schedule was detrimental to his burgeoning acting career, he dropped out of school.[44] Drake received his high school diploma in October 2012.[45] Career 2001–2009: Career beginnings Degrassi: The Next Generation At the age of 15, Drake, eager to begin his career as an actor, was introduced to a high school friend's father, an acting agent. The agent found Drake a role on the Canadian teen drama series Degrassi: The Next Generation, the fourth installment of the television franchise Degrassi and a continuation of the 1980s series Degrassi Junior High and Degrassi High. In Degrassi: The Next Generation, Drake portrayed Jimmy Brooks,[46] a basketball star who became physically disabled after he was shot by a classmate. Drake reportedly disliked this character arc because of its apparent tokenism (his was one of the only black characters in the series), and believed it could negatively influence his standing as a rapper. Madeleine Robinson, the executive director of the Californian non-profit organization Wheelchair 4 Kids, praised the storyline and Drake's performance, noting "he instilled confidence and representation" to disabled youth.[47] When asked about his early acting career, Drake replied, "My mother was very sick. We were very poor, like broke. The only money I had coming in was [from] Canadian TV."[31] According to showrunners Linda Schuyler and Stephen Stohn, Drake regularly arrived late on set after spending nights recording music. To prevent this, Schuyler claimed Drake struck an agreement with the set's security guards to gain entry to the set after recording to be allowed to sleep in a dressing room.[48] Early mixtapes and So Far Gone Main article: So Far Gone (mixtape) Lil Wayne, the founder of Young Money Entertainment, signed Drake to the label in 2009.[49] Being musically inspired by Jay-Z and Clipse, Drake self-released his debut mixtape, Room for Improvement, in 2006. The mixtape featured Trey Songz and Lupe Fiasco and included production from Boi-1da and Frank Dukes. When asked about the mixtape, Drake described the project as "pretty straightforward, radio friendly, [and] not much content to it." Room for Improvement was released for sale only and sold roughly 6,000 copies,[46] for which Drake received $304.04 in royalties.[50] He performed his first concert on August 19, 2006, at the Kool Haus nightclub as an opening act for Ice Cube, performing for half an hour and earning $100.[51] In 2007, Drake released his second mixtape Comeback Season. Released from his recently founded October's Very Own label, it spawned the single "Replacement Girl" featuring Trey Songz. The song made Drake become the first unsigned Canadian rapper to have his music video on BET, with "Replacement Girl" featured on their "New Joint of the Day" segment in April 2007.[52] The song saw Drake sample "Man of the Year" by Brisco, Flo Rida and Lil Wayne, retaining Lil Wayne's verse, and adjoined his own to the song's earlier half. This caused Jas Prince to gift Lil Wayne the song, which prompted the rapper to invite Drake to Houston to join his Tha Carter III tour.[53] Throughout the duration of the tour, Drake and Lil Wayne recorded multiple songs together, including "Ransom", "Forever", and a remix to "Brand New".[53] In 2009, Drake released his third mixtape So Far Gone. It was made available for free download through his OVO blog website, and featured Lil Wayne, Trey Songz, Omarion, Lloyd, and Bun B. It received over 2,000 downloads in the first 2 hours of release, finding mainstream commercial success from the singles "Best I Ever Had" and "Successful", both gaining Platinum certification by the Recording Industry Association of America (RIAA), with the former also peaking at number two on the Billboard Hot 100.[54] This prompted the mixtape's re-release as an EP, featuring four songs from the original, as well as the additions of the songs "I'm Goin' In" and "Fear". It debuted at number six on the Billboard 200, and won the Rap Recording of the Year at the 2010 Juno Awards.[55] Due to the success of the mixtape,[56] Drake was the subject of a bidding war from various labels, often reported as "one of the biggest bidding wars ever".[57] Despite this, Drake was rumoured to have secured a recording contract with Young Money Entertainment on June 29, 2009.[58] This was later confirmed following a planned lawsuit from Young Money, in conjunction with Drake, against an unauthorized fake album titled The Girls Love Drake released on iTunes.[59][vague] Drake joined the rest of the label's roster on the America's Most Wanted Tour in July 2009.[60] However, during a performance of "Best I Ever Had" in Camden, New Jersey, Drake fell on stage and tore the anterior cruciate ligament in his right knee.[61] He underwent surgery later that year. 2010–2012: Musical breakthrough with Thank Me Later and Take Care Main articles: Thank Me Later and Take Care (album) Drake at Bumbershoot in 2010 Drake planned to release his debut album, Thank Me Later, in late 2008, but the album's release date was postponed, first to March 2010,[62] and then to May 25, 2010.[63] Young Money and Universal Motown had released a statement that the album had again been pushed back three weeks for a June 15, 2010, release.[62][64] On March 9, 2010, Drake released the lead single "Over",[65] which peaked at number fourteen on the Billboard Hot 100, as well as topping the Rap Songs chart. It received a nomination for Best Rap Solo Performance at the 53rd Grammy Awards.[66] His second single, "Find Your Love", became a bigger success. It peaked at number five on the Hot 100, and was certified 3× Multi-Platinum by the Recording Industry Association of America (RIAA).[67] The music video for the single was shot in Kingston, Jamaica, and was criticized by Jamaica's minister of tourism Edmund Bartlett. Bartlett condemned the portrayal of the island in the video, saying, "care has to be taken by all, including our creative artists, in [showcasing] images of our destination and people. Gun culture, while not unique to Jamaica, is not enhancing [the island's image]."[68] The third single and fourth singles, "Miss Me" and "Fancy" respectively,[69] attained moderate commercial success; however, the latter garnered Drake his second nomination at the 53rd Grammy Awards for Best Rap Performance by a Duo or Group.[70] On April 29, it was reportedly announced that Drake had finished Thank Me Later during a show in Kansas City, Missouri.[71] Thank Me Later was released on June 15, 2010,[72] debuting at number one on the Billboard 200 with sales of over 447,000 copies in its first week.[73] Upon the album's release, 25,000 fans gathered at New York City's South Street Seaport for a free concert hosted by Drake and Hanson, which was later cancelled by the police after a near-riot ensued due to overflowing crowds.[74] The album became the top selling debut album for any artist in 2010 and had the highest sales week for any debut album in the 2010s[75] and featured Lil Wayne, Kanye West,[76] and Jay Z.[77] It was announced that Drake would have a prominent role in the military science fiction video game Gears of War 3. He was scheduled to play the role of Jace Stratton, but scheduling conflicts with his upcoming Away from Home Tour[78] prevented him from accepting the role.[79] He began the tour on September 20, 2010, in Miami, Florida, performing at 78 shows over four different legs.[80] It concluded in Las Vegas in November 2010.[81] Due to the success of the Away from Home Tour, Drake hosted the first OVO Festival in 2010. It became a regular event during the summer, with the Molson Amphitheatre in Toronto playing host to the festival on its annual cycle. Drake had an eco-friendly college tour to support the album, beginning with Eastern Illinois University in Charleston, Illinois. It concluded in Plymouth, New Hampshire, on May 8, and he performed at The Bamboozle on May 1.[78][82] Beginning his second effort in fall 2010,[83] Drake announced his intentions to allow Noah "40" Shebib to handle most of the production and record a more cohesive sound than on Thank Me Later, which featured disparate production duties by Shebib and others.[84] In November 2010, Drake revealed the title of his next studio album will be Take Care.[83] In comparison to his debut album, Drake revealed to Y.C Radio 1 that Thank Me Later was a rushed album, stating, "I didn't get to take the time that I wanted to on that record. I rushed a lot of the songs and sonically I didn't get to sit with the record and say, 'I should change this verse.' Once it was done, it was done. That's why my new album is called Take Care, because I get to take my time this go-round."[85] Drake sought to expand on the low-tempo, sensuous, and dark sonic esthetic of Thank Me Later.[86][87] Primarily a hip hop album, Drake also attempted to incorporate R&B and pop to create a languid, grandiose sound.[88] Drake performing with Bun B in 2011 In January 2011, Drake was in negotiations to join Eva Green and Susan Sarandon as a member of the cast in Nicholas Jarecki's Arbitrage,[89] before ultimately deciding against starring in the movie to focus on the album. "Dreams Money Can Buy"[90] and "Marvins Room"[86] were released on Drake's October's Very Own Blog, on May 20 and June 9, respectively. Acting as promotional singles for Take Care, the former was eventually unincluded on the album's final track listing, while "Marvins Room" gained 3× Multi-Platinum certification by the RIAA,[91] as well as peaking at number 21 on the Billboard Hot 100,[92] and reaching the top 10 of the Hot R&B/Hip-Hop Songs chart,[93] coupled with extensive play on contemporary urban radio.[94] Drake would soon release the song's music video on June 28.[95] "Headlines" was released on August 9 as the lead single for Take Care. It was met with positive critical and commercial response, reaching number thirteen on the Hot 100, as well as becoming his tenth single to reach the summit of the Billboard Hot Rap Songs, making Drake the artist with the most number-one singles on the chart, with 12.[96] It was eventually certified 4× Multi-Platinum in the United States and Platinum in Canada.[97] The music video for the single was released on October 2, and foresaw Drake performing the song during the second intermission of the 59th National Hockey League All-Star Game in January 2012.[98] "Make Me Proud" was released as the album's second single on October 16.[99] It was the final single to be released prior to the launch of the album, and debuted at number 97 on the Billboard Hot 100.[92] The song reached number nine the following week, tying the record for the largest jump on the Billboard Hot 100 for a male artist, with 88.[100] "Make Me Proud" soon became Drake's fourth consecutive single to receive Platinum certification by the RIAA.[101] Prior to the album's release, Drake planned to record a collaborative album with Lil Wayne; however, it was ultimately scrapped due to the success of Watch the Throne.[102][103][104] He also began collaborations with Rick Ross for a mixtape titled Y.O.L.O., but the duo decided against the project in favor of increased concern for their respective studio albums.[105][106] Although in 2021, Ross stated that a joint album is still possible as they've casually discussed it.[107] Drake during a performance in Toronto in 2011 Take Care was released on November 15, 2011, and received generally positive reviews from music critics.[108] John McDonnell of NME dubbed it "an affecting masterpiece" and commended its "delicate, mellifluous sound and unashamedly candid, emotive lyrics."[109] Pitchfork's Ryan Dombal found Drake's "technical abilities" to be improved and stated, "Just as his thematic concerns have become richer, so has the music backing them up."[110] Andy Hutchins of The Village Voice called it "a carefully crafted bundle of contradictory sentiments from a conflicted rapper who explores his own neuroses in as compelling a manner as anyone not named Kanye West."[111] Chicago Tribune writer Greg Kot complimented the depth of Drake's "moral psychodramas" and stated, "the best of it affirms that Drake is shaping a pop persona with staying power."[112] It also won the Grammy Award for Best Rap Album at the 55th Annual Grammy Awards, and achieved great commercial success, eventually being certified six times platinum by the RIAA in 2019, with sales for the album marking 2.6 million in the U.S.[113] The album's third and fourth singles, "The Motto" and Take Care", were released on November 29, 2011[114] and February 21, 2012, respectively.[115] Each song was subject to commercial success, while also having large societal impacts, with "The Motto" credited for popularizing the phrase "YOLO" in the United States.[116][117] The music video for "Take Care" saw widespread acclaim, with MTV stating, "None of his contemporaries – not even the ever-obtuse Kanye [West] – make videos like this, mostly because no one else can get away with it."[118] The video received four nominations at the 2012 MTV Video Music Awards for Best Male Video, Best Art Direction, Best Cinematography, and Video of the Year.[119] The song was also featured on the channel's "Pop Songs You Must Hear" list of 2011.[120] "HYFR" was the final single to be released from the album, and became certified 2× Multi-Platinum.[121][122] It also won the MTV Video Music Award for Best Hip-Hop Video in 2012,[28][123] and the channel ranked him number two on their "Hottest MCs in the Game" list.[124] On August 5, 2012, Drake released "Enough Said", performed by American recording artist Aaliyah featuring additional vocals provided by himself.[125] Originally recorded prior to the singer's death in a plane crash in 2001, Drake later finished the track with producer "40". "Enough Said" was released by Blackground Records through their SoundCloud account on August 5, 2012.[126] It was sent to US urban and rhythmic radio stations on August 21.[127] The song charted at number 55 on the Billboard Hot R&B/Hip-Hop Songs. In promotion of his second album, Drake embarked on the worldwide Club Paradise Tour. It became the most successful hip hop tour of 2012, grossing over $42 million.[128] He then returned to acting, starring in Ice Age: Continental Drift as Ethan.[129] 2013–2015: Nothing Was the Same and If You're Reading This It's Too Late Main articles: Nothing Was the Same and If You're Reading This It's Too Late During the European leg of the Club Paradise Tour, Drake spoke in an interview stating that he had begun working on his third studio album. Revealing his intentions to remain with 40 as the album's executive producer, Drake spoke fondly about Jamie xx, hoping to include and expand the British producer's influence over his next album.[130] Drake had also revealed that the album would stylistically differ from Take Care, departing from the ambient production and despondent lyrics prevalent previously.[131] In January 2013, Drake announced that he would release the first single off his third album at the end of the 55th Annual Grammy Awards.[132][133] Despite an initial delay, it was released in the wake of his win for the Grammy Award for Best Rap Album at the event, and it foresaw Drake announcing Nothing Was the Same as the title of his third album.[134] The album's second single, "Hold On, We're Going Home", was released in August 2013, becoming the most successful single off the album, peaking at number one on the Billboard Hot R&B/Hip-Hop Songs chart.[135] and being certified 6× Multi-Platinum by the RIAA in 2018[136] Drake sought inspiration from the 1980s television series Miami Vice during the composition of the song's music video, incorporating the dramatic elements seen in the show en route to winning his second MTV Video Music Award in 2014 for the video.[137][138][139] Drake appeared on Late Night with Jimmy Fallon, performing the album's third single, "Too Much", alongside featured artist Sampha.[140] Nothing Was the Same was released on September 24, 2013, debuting at number one on the US Billboard 200, with 658,000 copies sold in its first week of release.[141] The album debuted atop the charts in Canada, Denmark, Australia and the United Kingdom. The album also enjoyed generally favourable reviews by contemporary music critics, commending the musical shift in terms of the tone and subject matter, comparing it to the distinct change showcased in Kanye West's 808s & Heartbreak.[142] The album was also reported to have sold over 1,720,000 copies in the United States, and was further promoted by the "Would You like a Tour?" throughout late 2013 to early 2014.[143] It became the 22nd-most successful tour of the year, grossing an estimated $46 million.[144] Drake then returned to acting in January 2014, hosting Saturday Night Live, as well as serving as the musical guest. His versatility, acting ability and comedic timing were all praised by critics, describing it as what "kept him afloat during the tough and murky SNL waters".[145][146][147] Drake also performed in Dubai, being one of the only artists ever to perform in the city.[148] In late 2014, Drake announced that he began recording sessions for his fourth studio album.[149] In 2014, Drake performed in Spanish as a featured artist on the Romeo Santos song "Odio". He also appeared on a remix of "Tuesday" by ILoveMakonnen, which peaked at number one on Billboard's Rhythmic chart and number twelve on the "Hot 100", and released "0 to 100 / The Catch Up" as a non-album single. The latter went double platinum in the United States. On February 12, 2015, Drake released If You're Reading This It's Too Late onto iTunes with no prior announcement. Despite debate on whether it was an album[150] or a mixtape,[151] its commercial stance quantifies it as his fourth retail project with Cash Money Records, a scheme that was rumoured to allow Drake to leave the label.[152][153] However, he eventually remained with Cash Money, and If You're Reading This It's Too Late sold over 1 million units in 2015, making Drake the first artist with a platinum project in 2015, as well as his fourth overall.[113] 2015–2017: What a Time to Be Alive, Views, and More Life Main articles: What a Time to Be Alive, Views (album), and More Life On July 31, 2015, Drake released four singles: "Back to Back", "Charged Up", "Hotline Bling", and "Right Hand". On September 20, 2015, Drake released a collaborative mixtape with Future,[154][155] which was recorded in Atlanta in just under a week.[156] What a Time to Be Alive debuted at number one on the Billboard 200, making Drake the first hip hop artist to have two projects reach number one in the same year since 2004.[157] It was later certified 2× multi platinum by the Recording Industry Association of America (RIAA) for combined sales, streaming and track-sales equivalent of over 2 million units.[158] Drake also appeared on the cover of The Fader for their 100th issue.[159] Drake announced in January 2016 that his fourth studio album would be launched during the spring, releasing the promotional single "Summer Sixteen" later that month. The album was originally titled Views from the 6, but was later shortened to Views.[160] "Summer Sixteen" debuted at number six on the US Billboard Hot 100, and proved controversial, with Drake comparing his standing in hip hop to more tenured artists. This move divided many contemporary music critics, describing his self-comparison as "goodly brash" or "conventionally disrespectful."[161][162][163] It was also interpreted as a diss track towards Tory Lanez, who was unhappy at Drake for popularizing the term "The Six" when referencing Toronto.[164][165] Drake soon released the album's lead singles, "Pop Style" and the dancehall-infused "One Dance", on April 5. Both debuted within the top 40 of the Billboard Hot 100;[166] however, the latter proved more commercially successful, with "One Dance" becoming Drake's first number-one single in Canada and the US as a leading artist.[167][168] The single also became Drake's first number one single as a lead artist in the United Kingdom, and peaked at number one in Germany, France, Australia, Brazil, Sweden, Belgium, Norway and the Netherlands.[169][170] During an episode for OVO Sound Radio, Drake confirmed the album's release date of April 29, and followed it up with various promotional videos.[171] On October 15, "One Dance" became Spotify's most-streamed song ever, amassing over 882 million plays as of October 2016.[172] it also became the first song in history to hit 1 billion streams on spotify on December 16, 2016[173] Drake performing at the Summer Sixteen Tour in Toronto in 2016 Views was previewed in London before its premiere on Beats 1 a day later. It was released as an Apple Music and iTunes exclusive on April 29 before being made available to various other platforms later that week.[174][175] Views would become Drake's most commercially successful album, sitting atop the Billboard 200 for thirteen nonconsecutive weeks, as well as simultaneously leading the Billboard Hot 100 and the Billboard 200 for eight weeks. It also achieved sextuple-platinum status in the U.S., and earned over 1 million album-equivalent units in the first week of its release, as well as gaining over half-billion overall streams of the album.[176][177][178] Despite its success, critical opinion towards the album remained much divided, drawing criticism for being overlong and lacking in a cohesive theme, while also claiming Drake was not challenging himself artistically, as opposed to his contemporaries.[179] He later released a short film titled Please Forgive Me, starring Swedish twin models Elizabeth and Victoria Lejonhjärta who are frequent collaborators with him.[180] As of 2019, Views remains Drake's best-selling album in pure sales.[181] Drake returned to host Saturday Night Live on May 14, serving as the show's musical guest.[182] Later, Drake was named as a member of the Forbes Five, which ranks the wealthiest artists in hip-hop, placing fifth after Birdman, Jay-Z, Dr. Dre, and Diddy respectively.[183] Drake and Future then announced the Summer Sixteen Tour to showcase their collective mixtape, as well as their respective studio albums. This marked Drake's third co-headlining tour, which began in Austin, Texas, on July 20.[184][185][186] On July 23, Drake announced that he was working on a new project, scheduled to be released in early 2017,[187] and was later named as the headline act for the 2016 iHeartRadio Music Festival.[188] The latter dates of the Summer Sixteen Tour were postponed, however, due to Drake suffering an ankle injury.[189] According to Pollstar, the Summer Sixteen Tour was revealed to be the highest grossing hip-hop tour of all time, with gross of $84.3 million across 56 dates between July and October 2016. This dethroned the previous record of $75.6 million through 63 dates for the Watch the Throne Tour.[190] During the 2016 OVO Festival, Kanye West confirmed that he and Drake had begun working on a collaborative album.[191] Soon after, the music video for "Child's Play" was released, depicting Drake and Tyra Banks playing a couple encountering relationship issues at the Cheesecake Factory in a reference to one of the song's lyrics.[192] On September 26, Please Forgive Me was released as an Apple Music exclusive. It ran a total of 25 minutes, and featured music from Views.[193] At the 2016 BET Hip-Hop Awards, Drake received the most nominations, with 10,[194] winning the awards for Album of the Year and Best Hip-Hop Video.[195][196] Drake later announced the Boy Meets World Tour on October 10, with twenty-six dates announced for the course of the tour in Europe.[197] Seven additional dates were added a day later due to overwhelming demand.[198] Drake at the premiere of The Carter Effect at the 2017 Toronto International Film Festival Soon after, during an episode of OVO Sound Radio, Drake confirmed he would be releasing a project titled More Life in December. However, he later pushed the date back to the new year. The project was described as a "playlist of original music", rather than being classified as a traditional mixtape or solo album.[199] He was later revealed to be Spotify's most streamed artist for the second consecutive year in 2016, amassing a total 4.7 billion streams for all projects on the service, which is more than double the amount of streams he had in 2015.[200] Drake later secured his second and third Grammy Awards, winning for Best Rap/Sung Performance and Best Rap Song at the 59th ceremony.[201] Despite multiple setbacks, Drake announced More Life would be released on March 18, 2017, via a series of multiple video commercials released through Instagram.[202] Upon release, More Life received mostly positive reviews, and debuted atop the Billboard 200, earning 505,000 album-equivalent units in its first week.[203] It also set a streaming record, becoming the highest ever streamed album in 24 hours, with a total of 89.9 million streams on Apple Music alone. The album also garnered 61.3 million streams on Spotify, dethroning Ed Sheeran's ÷ as the highest opening on the service in a single day.[204] He later won 13 awards at the 2017 Billboard Music Awards in May, which saw him breaking the record for the most wins in a single show.[205] Billboard also reported Drake had been present on the Hot 100 chart for eight consecutive years, and has the most recorded entries by a solo artist.[206] He later declined to submit More Life for consideration at the 2018 Grammy Awards, stemming from his displeasure at "Hotline Bling" being "pigeonholed" into the rap category.[207] He then released the single "Signs" on June 24, as well as reuniting with Metro Boomin on a single with Offset.[208][209] The singles marked his first releases since More Life, with "Signs" was initially released as a collaboration between Drake and French fashion house Louis Vuitton, as part of the "Louis Vuitton Men's Spring-Summer 2018" fashion show.[210] Drake hosted the first annual NBA Awards on June 26, and starred in multiple commercials alongside his father in promotion of Virginia Black.[211][212] Drake also appeared in The Carter Effect documentary, honouring the basketball career of Vince Carter, who was the first superstar player to play for the Toronto Raptors since the franchise's inception in 1995.[213] The documentary also featured NBA players Chris Bosh, Tracy McGrady, Steve Nash, and LeBron James. 2018–2019: Scorpion and Care Package; return to television Main articles: Scorpion (Drake album) and Care Package (album) After rumours circulated of Drake possibly collaborating with various artists, including rapper Trippie Redd and producer Pi'erre Bourne, for his new studio album, multiple snippets of songs were leaked near the closing end of 2017.[214][215][216] Two songs would later be released as members of a mini EP, titled Scary Hours, on January 20, 2018, marking Drake's first solo release since More Life, as well as his first appearance on any song after featuring on a remix of the Jay-Z song "Family Feud" with Lil Wayne, as the lead single of the latter's Dedication 6: Reloaded mixtape.[217] Scary Hours featured the songs "Diplomatic Immunity" and "God's Plan", which both debuted within the top-ten, with the latter eventually breaking various streaming records as it debuted at number one on the US Billboard Hot 100.[218][219][220] The song was Drake's first song as a solo artist to reach number one, his second chart topper as a lead artist and fourth chart topper overall. it also became his first ever song to be certified Diamond by the RIAA[221] it is currently tied for the fourth highest certified digital single ever in the US[222] Drake earned his 70th top 40 entry after featuring on the Migos song "Walk It Talk It", which debuted at number eighteen, and peaked at number ten.[223] He was later featured on BlocBoy JB's debut single "Look Alive", which was released on February 9, 2018.[224] The song's entry at number six on the Hot 100 made Drake the rapper with the most top 10 hits on the Hot 100, with 23.[225] He then featured on a remix to "Lemon", a song originally released as a collaboration between band N.E.R.D and Rihanna. On April 5, Drake announced he was finishing his fifth studio album and he was releasing a single later that night.[226] On April 6, "Nice for What" was released, alongside a music video directed by Karena Evans, which featured several female celebrities.[227][228] After "Nice For What" replaced his own "God's Plan" on the Billboard Hot 100 at number one, making him the first artist to have a new number-one debut replace their former number-one debut, Drake announced the title of his fifth studio album as Scorpion, with a planned release date of June 29, 2018.[229][230] He then released "I'm Upset" on May 26 as the album's third single.[231] Scorpion was then released as a double-album, and marked Drake's longest project, with a run-time of just under 90 minutes. The album broke both the one-day global records on Spotify and Apple Music, as it gained 132.45 million and 170 million plays on each streaming service, respectively.[232] It eventually sold 749,000 album equivalent units in its first week of sales, and debuted at number one on the Billboard 200.[233][234] In 2018, articles by The Guardian and Rolling Stone called him "the definitive pop star of his generation" and "perhaps [the] biggest post-Justin Timberlake male pop star of the new millennium", respectively.[235][236] Shortly thereafter, Drake collaborated with British hip hop promotion Link Up TV on July 7, releasing a freestyle as a part of the promotion's 'Behind Barz' segment,[237] before releasing another freestyle a week later after featuring on Charlie Sloth's long-running Fire in the Booth program on BBC Radio 1Xtra.[238] Drake then earned his sixth number-one hit with "In My Feelings" on July 21,[239] which also spawned the viral "#InMyFeelingsChallenge" or "#KiKiChallenge".[240][241][242] The success of "In My Feelings" also made Drake the record holder for most number one hits among rappers.[243] Soon after, he released the music video for "Nonstop", which was filmed in London during his surprise performance at the Wireless Festival.[244] He then appeared on the Travis Scott album Astroworld, featuring uncredited vocals for his song "Sicko Mode", which peaked at number one on the Billboard Hot 100.[245] Drake announced in July 2018 that he planned to "take 6 months to a year" to himself to return to television and films, producing the television series Euphoria and Top Boy.[246] He then began the Aubrey & the Three Migos Tour with co-headliners Migos on August 12. This preceded a collaboration with Bad Bunny titled "Mia", which featured Drake performing in Spanish.[247] He subsequently received the award for Hot Ticket Performer at the 2018 BET Hip Hop Awards on October 16. During a performance in Edmonton on November 7, Drake announced his intention to begin composing his next project in early 2019.[248] In February 2019, he received his fourth Grammy Award for Best Rap Song, for "God's Plan", at the 61st Annual Grammy Awards.[249] During his speech, producers abruptly cut to a commercial break, leading viewers to speculate they were censoring his speech during which he criticized The Recording Academy.[250] A legal representative for the academy then released a statement stating "a natural pause [led] the producers [to] assume that he was done and cut to commercial," and added the organization offered him an opportunity to return to stage, but he declined.[251] On February 14, Drake re-released his third mixtape, So Far Gone, onto streaming services for the first time to commemorate its 10-year anniversary,[252] and later collaborated with Summer Walker on a remix of Walker's song "Girls Need Love", marking his first release of 2019.[253] On April 10, during a performance on the Assassination Vacation Tour, he announced he was working on a new album.[254] On June 8, Drake appeared on Chris Brown's single "No Guidance".[255] On June 15, Drake released two songs, "Omertà" and "Money in the Grave", on his EP The Best in the World Pack to celebrate the NBA Championship win of the Toronto Raptors.[256] On August 2, he released the compilation album Care Package, consisting of songs released between 2010 and 2016 that were initially unavailable for purchase or commercial streaming;[257] it debuted at number one on the Billboard 200 with 109,000 album equivalent units in its first week of sales [258] 2019–2021: Dark Lane Demo Tapes and Certified Lover Boy Main articles: Dark Lane Demo Tapes and Certified Lover Boy Drake released the song "War" on December 24, 2019, with an accompanying music video, which was widely noted for its UK drill-inspired instrumental.[259][260][261] The following day, in an interview with Rap Radar, it was revealed that he was in the process of completing his sixth studio album.[262] On January 10, 2020, Drake collaborated with Future on the song "Life Is Good", which appeared on the album High Off Life.[263] On January 31, the pair again collaborated on the song "Desires", although it was released for free after being leaked.[264] On February 29, Drake released the songs "When to Say When" and "Chicago Freestyle" with a combined music video.[265] On April 3, he released "Toosie Slide" with a music video, which features a dance created in collaboration with social media influencer Toosie.[266] It debuted at number one on the Billboard Hot 100, making Drake the first male artist to have three songs debut at number one.[267] On May 1, 2020, Drake released the commercial mixtape Dark Lane Demo Tapes, with guest appearances from Chris Brown, Future, Young Thug, Fivio Foreign, Playboi Carti, and Sosa Geek.[268] He also announced that his sixth studio album would be released in the summer of 2020.[269] The mixtape is a compilation of new songs and tracks that leaked on the internet.[270] It received mixed reviews and debuted at number two on the US Billboard 200 with 223,000 album-equivalent units,[271] and at number one on the UK Albums Chart, earning 20,000 units in its first week.[272] On July 17, Drake was featured on DJ Khaled's singles "Greece" and "Popstar",[273] debuting at numbers eight and three on the Billboard Hot 100, respectively, becoming Drake's record-extending 24th and 25th debuts in the Hot 100's top 10. It also became his 39th and 40th Hot 100 top ten entries, breaking Madonna's record for most Hot 100 top ten hits.[274] On July 20, Drake and Headie One released the drill track "Only You Freestyle", making it the third drill-inspired song he released in 2020, after "War" and "Demons", both of which appear on Dark Lane Demo Tapes.[275] On August 14, "Laugh Now Cry Later" featuring Lil Durk was released, which was intended as the lead single from Drake's album Certified Lover Boy,[276] but not included on the final track listing. It debuted at number two on the Hot 100, and was nominated for Best Melodic Rap Performance and Best Rap Song at the 63rd Annual Grammy Awards. On September 3, the video for "Popstar" was released, in which Drake makes a cameo appearance.[277] On October 2, Drake was the sole guest appearance on Bryson Tiller's album Anniversary (2020), on the song "Outta Time".[278] He subsequently appeared on the remix to "You're Mines Still", alongside Yung Bleu on October 16;[279] just over a week later, on his 34th birthday, Drake announced Certified Lover Boy was set to be released in January 2021.[280][281] This was later pushed back to an unspecified date after he sustained a knee injury which required surgery.[282] On December 1, he reunited with Lil Wayne on "B.B. King Freestyle", the lead single from the latter's double-disc mixtape No Ceilings 3 (2020).[283] In January 2021, Drake became the first artist to surpass 50 billion combined streams on Spotify.[284] He later collaborated with Drakeo the Ruler on the single "Talk to Me", which was released on February 23.[285] On March 5, Drake released an EP titled Scary Hours 2, which includes three songs: "What's Next", "Wants and Needs" with Lil Baby, and "Lemon Pepper Freestyle" with Rick Ross.[286] These three songs entered the charts at numbers one, two, and three, respectively, making Drake the first artist to have three songs debut in the top three on the Billboard Hot 100.[287] He then appeared on the single "Solid" from the YSL Records compilation Slime Language 2, alongside Gunna and Young Thug.[288] "Solid" was originally meant to appear on Certified Lover Boy, and to only feature Gunna.[289] On May 14, Drake was featured alongside mentor Lil Wayne on former labelmate Nicki Minaj's "Seeing Green", a new song on the streaming re-release of her 2009 mixtape Beam Me Up Scotty.[290] Two weeks later, he was named Artist of the Decade at the 2021 Billboard Music Awards.[291] On June 12, he featured on Migos' "Having Our Way", from the group's third studio album, Culture III (2021),[292] and on July 1, collaborated with Brent Faiyaz and The Neptunes on the song "Wasting Time".[293] On July 23, Drake appeared on "Over the Top" with Smiley, the newest signee to OVO Sound.[294][295] During an appearance on Fri Yiy Friday, a radio show supported by OVO Sound, Drake revealed Certified Lover Boy "is ready. [I'm] looking forward to delivering it".[296] He then appeared on "Betrayal", a collaboration with Trippie Redd for Trip at Knight (2021).[297] Certified Lover Boy was then released on September 3, 2021, becoming his tenth number-one album on the Billboard 200;[298] every song debuted on the Billboard Hot 100, while the album was the first to chart nine songs on the top 10, with "Way 2 Sexy" becoming Drake's ninth number-one single. He subsequently set the record for the fourth-most cumulative weeks (52) at number one on the Hot 100, behind Mariah Carey (84), Rihanna (60), and The Beatles (59).[299][300] He received a nomination for Best Global Act at the 2021 All Africa Music Awards,[301] and appeared on Young Thug's Punk (2021), featuring on the song "Bubbly". On October 22, Drake featured on Majid Jordan's "Stars Align", the lead single to the duo's third album Wildest Dreams.[302] Two weeks later, on November 5, Drake released a horror-themed black and white music video for "Knife Talk", the third single from Certified Lover Boy, with featured appearances by 21 Savage and Project Pat.[303] On November 6, he debuted the song "Give It Up" on OVO Sound Radio.[304] Certified Lover Boy was nominated for Best Rap Album and "Way 2 Sexy" was nominated for Best Rap Performance at the 64th Annual Grammy Awards.[305] He was later named Billboard's Top Artist of the Year for 2021,[306] and was the fourth most streamed artist on Spotify for the year, and the most streamed rapper.[307] On December 6, he withdrew his music for consideration for the Grammys, with multiple outlets noting his contentious relationship with the Recording Academy.[207] Drake accumulated 8.6 billion on-demand streams in 2021, making him the most overall streamed artist of the year in the United States; one out of every 131 streams was a Drake song.[308] 2022–present: Honestly, Nevermind, Her Loss, For All the Dogs and planned hiatus Main articles: Honestly, Nevermind; Her Loss; and For All the Dogs On January 7, 2022, Drake was announced as a featured artist on Gunna's DS4Ever; he was included on the deluxe edition released a week later.[309][310] On January 17, Drake announced another collaboration with DJ Khaled; this was reportedly recorded that June,[311][312] and eventually released with Lil Baby on August 5 as "Staying Alive", the lead single from Khaled's thirteenth studio album God Did (2022).[313] On March 3, Drake placed fourth on Forbes's ranking of highest paid rappers of 2021, with an estimated pre-tax income of $50 million,[314] and then announced a return to touring, with two "interactive" concerts expected in Toronto and New York City.[315] On March 23, he won Hip-Hop Artist of the Year at the 2022 iHeartRadio Music Awards.[316] On April 16, it was calculated Drake generated more streams in 2021 than every song released prior to 1980 combined; his music accumulated 7.91 billion streams, while songs pre-1980 had generated 6.32 billion.[317] Drake was then confirmed as a guest artist on Future's I Never Liked You (2022), featuring on the songs "Wait for U" alongside Tems and "I'm on One",[318] the former of which debuted atop the Billboard Hot 100, becoming Drake's tenth number-one song and making him the tenth act to achieve ten number ones.[319] On May 2, Jared Krichevsky, a Character and Creature Designer for Warner Bros. Pictures revealed the studio once sought to cast Drake as Victor Stone / Cyborg in an untitled television series, publishing concept art.[320] In Universal Music Group's Q1 earnings call on May 4, it was announced Drake re-signed with the company in a multifaceted deal, which includes recordings, publishing, merchandise, and "visual media projects"; although an official figure wasn't revealed, it was reported to be worth as high as $400 million, making it one of the largest recording contracts ever.[321] On June 16, Drake announced his seventh album, Honestly, Nevermind, which released a day later; on the debut episode of his recently launched radio show Table for One on Sirius XM, he announced a poetry book with frequent writing collaborator Kenza Samir in 2022, and a yet undetermined release of the third iteration of his Scary Hours EP series.[322] Honestly, Nevermind sold 204,000 album-equivalent units in its first week, becoming Drake's eleventh US number-one album and making him the fifth artist with over 10 number one albums, after the Beatles (19), Jay-Z (14), Bruce Springsteen, and Barbra Streisand (both 11). It was also the fourth-largest streaming week for any album in 2022, after Un Verano Sin Ti, Mr. Morale & The Big Steppers, and I Never Liked You.[323] "Jimmy Cooks" also became Drake's eleventh US number-one song, although, the song "Texts Go Green" tied the record (held by Kendrick Lamar and Taylour Paige's "We Cry Together") for biggest single-week drop in Billboard Hot 100 history, falling from number 13 to number 94.[324] On July 14, it was announced Drake would reunite with former Young Money label mates Lil Wayne and Nicki Minaj on a three date Toronto exclusive concert series titled the "October World Weekend", on July 28, July 29, and August 1. The concerts are also set to feature both Chris Brown and Lil Baby, and is expected to be the first leg of the Road to OVO Fest Tour, a worldwide edition of OVO Fest to commemorate its 10th anniversary.[325] On July 29, Drake was revealed as a collaborator on Beyoncé's Renaissance (2022), co-writing the song "Heated". On August 2, the music video for "Sticky", the second single from Honestly, Nevermind, was released.[326] After the debut of "Staying Alive" on the US Billboard Hot 100, it marked the 30th Drake song to reach the top five on the chart, breaking a 55-year-old record for most songs to reach the top five on the chart (29), held by The Beatles.[327] On October 5, 2022, Drake, in conjunction with SiriusXM, announced a special two-night live concert at the Apollo Theater in Harlem, New York for November 11 and 12;[328] these were first delayed to that December and then delayed to January 2023, citing production delays.[329] Drake then refused to submit his solo music for consideration at the 2023 Grammy Awards, refusing to submit his music for Grammy consideration for a second consecutive year.[330] At the 2022 SOCAN Awards, Drake won Songwriter of the Year.[331] On October 22, Drake announced Her Loss, a collaborative album with 21 Savage which would release on October 28;[332] it was then delayed to November 4 after Drake's longtime producer, 40, was diagnosed with COVID-19.[333] At the 2022 People's Choice Awards, Drake was nominated for three awards: Male Artist of 2022, Song of 2022 (for "Wait for U" with Future and Tems), and Collaboration Song of 2022 (for "Jimmy Cooks" with 21 Savage).[334] Her Loss debuted atop the Billboard 200, accumlating first week sales of 404,000 album-equivalent units. Eight of the album's songs debuted in the top ten on the Billboard Hot 100, extending Drake's record for most top ten entries, with 67 (with a record 49 as a lead artist).[335] He is also the only artist to log eight top tens from one album twice.[335] On November 15, Drake was nominated for four awards at the 2023 Grammy Awards: Album of the Year (for his writing on Beyoncé's Renaissance), Best Melodic Rap Performance (for "Wait for U"), and two for Best Rap Song (for "Churchill Downs" with Jack Harlow, and "Wait for U").[336] A day later, he released the music video for "Rich Flex" from Her Loss.[337] On January 6, 2023, Drake was featured on "We Caa Done", the lead single to Popcaan's fifth studio album Great Is He (2023).[338] In an interview that same month, producer Metro Boomin revealed he rejected the verse Drake recorded for the song "Trance" for his album Heroes & Villains (2022).[339] On February 24, the music video for the song "Spin Bout U" from Her Loss was released.[340] Four days later, he was announced to headline that year's Dreamville Festival, which took place on April 1–2 at Dorothea Dix Park in Raleigh, North Carolina.[341] In February 2023, Drake was named the most streamed act ever on Spotify.[342] On April 2, a song tentatively titled "Rescue Me" previewed on The Fry Yiy Show on SiriusXM Radio, which featured samples of Kim Kardashian from the final episode of Keeping Up with the Kardashians (2007–2021);[343] it was released five days later, officially titled "Search & Rescue".[344] The song peaked at number two on the Billboard Hot 100, with its potential number one debut having been thwarted by Morgan Wallen's song "Last Night".[345] On July 21, 2023, Drake also teamed up with British rapper Central Cee on a freestyle track for the On the Radar Radio YouTube channel.[346] On July 23, 2023, Drake announced his poetry book titled Titles Ruin Everything. Upon promotion for the book, A QR code was made for fans to scan,[347] once scanned the fans were redirected to a page with an announcement for the title of his eighth studio album, titled For All the Dogs,[348] released on October 6, 2023.[349] On September 15, 2023, Drake released the lead single of the album, "Slime You Out", featuring SZA.[350] The song charted at number one on the US Billboard Hot 100. On September 16, 2023, Drake announced that the album is postponed to October 6.[351] On October 5, 2023, Drake surprise-released a song titled "8AM in Charlotte" on his social media accounts making it the albums second released single.[352] Artistry Influences Drake has cited several hip hop artists as influencing his rapping style, including Kanye West,[353] Jay-Z,[354] MF Doom,[355] and Lil Wayne,[356] while also attributing various R&B artists as influential to the incorporation of the genre into his own music, including Aaliyah[357] and Usher.[358] Drake has also credited several dancehall artists for later influencing his Caribbean-inflected style, including Vybz Kartel, whom he has called one of his "biggest inspirations".[359][360] He has been credited with performing and attracting fans from many cultures such as Spanish in the song Mia,[361] Arabic in the song Greece,[362] Portuguese in Ela É do Tipo,[363] French in Sticky[364] and Punjabi in an upcoming song with Sidhu Moose Wala and Wazir Patar.[365][366][367][368] Musical style Drake has credited Kanye West (left) and Aaliyah (right) as being his biggest musical influences. Drake is considered to be a pop rap artist.[369] While Drake's earlier music primarily spanned hip hop and R&B, his music has delved into pop and trap since the albums Nothing Was the Same (2013) and Views (2016).[370] Additionally, his music has drawn influence from regional scenes, including Jamaican dancehall[360] and UK drill.[261] Drake is known for his egotistical lyrics, technical ability, and integration of personal backstory when dealing with relationships with women.[371] His vocal abilities have been lauded for an audible contrast between typical hip-hop beats and melody, with sometimes abrasive rapping coupled with softer accents, delivered on technical lyricism.[372] His songs often include audible changes in lyrical pronunciation in parallel with his upbringing in Toronto, and connections with Caribbean and Middle Eastern countries which include such phrases as "ting", "touching road", "talkin' boasy" and "gwanin' wassy".[372] Most of his songs contain R&B and Canadian hip hop elements, and he combines rapping with singing.[373] He credits his father with the introduction of singing into his rap mixtapes, which have become a staple in his musical repertoire. His incorporation of melody into technically complex lyrics was supported by Lil Wayne, and has subsequently been a critically acclaimed component to Drake's singles and albums.[374] Drake's style of R&B is characterized by vacant beats and a rap-sung dichotomy, which has also seen incredible mainstream success, spawing several imitators.[375] The lyrical content that Drake deploys is typically considered to be emotional[376] or boastful.[377] However, Drake is often revered for incorporating "degrading" themes of money, drug use, and women into newer, idealized contexts, often achieving this through his augmentation of the typical meaning of phrases in which he combines an objective and subjective perspective into one vocal delivery. His songs often maintain tension between "pause and pace, tone timbre, and volume and vocal fermata."[378] Drake is credited with innovating what has been referred to as "hyper-reality rap", characterized by its focus on themes of celebrity as distinct from the "real world."[379] Public image A wax figure of Drake in Madame Tussauds, London Drake's lyrical subject matter, which often revolves around relationships, have had widespread use on social media through photo captions to reference emotions or personal situations.[380] However, this content has incited mixed reception from fans and critics, with some deeming him as sensitive and inauthentic, traits perceived as antithetical to traditional hip hop culture.[381][382] He is also known for his large and extravagant lifestyle, including for high-end themed birthday parties;[383] he maintained this image in his early career by renting a Rolls-Royce Phantom, which he was eventually gifted in 2021.[384] He cultivated a reputation as a successful gambler; between December 2021 and February 2022, he was reported to have made bets of over $1 billion, which included winnings ranging between $354,000 and $7 million,[385] however some of the forms of gambling he promotes, such as roulette, have negative expected values.[386] The Washington Post editor Maura Judkis credits Drake for popularizing the phrase "YOLO" in the United States with his single "The Motto", which stands for, "You only live once."[387] Drake later popularized the term "The Six" in 2015 in relation to his hometown Toronto, subsequently becoming a point of reference to the city.[388] June 10 was declared "Drake Day" in Houston.[389][390][391] In 2016, Drake visited Drake University after a show in Des Moines in response to an extensive social media campaign by students that began in 2009, advocating for his appearance.[392][393] According to a report from Confused.com, Drake's Toronto home was one of the most Googled homes in the world, recording over a million annual searches in 2021; its features, such as its NBA-size indoor basketball court and Kohler Numi toilet, have also received widespread media attention.[394] The music video for "Hotline Bling" went viral due to Drake's eccentric dance moves.[395] The video has been remixed, memed, and was heavily commented on due to the unconventional nature on the song,[396] causing it to gain popularity on YouTube, and spawning several parodies.[397] Drake has also been critiqued for his expensive, product placement-heavy attire, exemplified by the video for "Hotline Bling". Drake modelled a $1,500 Moncler Puffer Jacket, a $400 Acne Studios turtleneck, and limited edition Timberland 6" Classic Boots.[398][399] He was labeled by GQ magazine as "[one of] the most stylish men alive";[400] during promotion for Certified Lover Boy, Drake debuted a "heart haircut", which became popular and widely imitated.[401] Writing for GQ, Anish Patel noted Drake's consistent incorporation of styles and themes not typically associated with hip hop, such as wearing gorpcore in the music video for his song "Sticky".[402] Between 2016 and 2019, Drake was noted for the "Drake curse", an internet meme based on the incidents where he appears to be support of particular sports team or person, just for that team or person to lose, often against the odds.[403] In 2016, Drake spoke on the shooting of Alton Sterling, publishing an open letter expressing his concern for the safety of ethnic minorities against police brutality in the United States.[404] In 2021, he joined a group of Canadian musicians to work with the Songwriters Association of Canada (SAC) to lobby Prime Minister Justin Trudeau to restructure the country's copyright law to allow artists and their families to regain ownership of copyrights during their lifetime.[405] He also campaigned for the expansion of a Women's National Basketball Association (WNBA) franchise in Toronto,[406] and headlined a benefit concert at the Los Angeles Memorial Coliseum with Kanye West on December 9, 2021, to raise clemency for Larry Hoover,[407] although his solo performance was later removed from the Prime Video replay.[408] On Christmas 2021, Drake gave away money to individuals in Toronto.[409] In October 2023, he signed a letter calling for a ceasefire in the 2023 Israel–Gaza war.[410] Impact A prominent figure in pop culture,[411] Drake is often praised one of the most influential figures in hip hop;[412] particularly his use of singing over hip hop instrumentals has been noted as an influence on modern rappers.[413] He is widely credited for popularizing the Toronto sound to the music industry and leading the "Canadian Invasion", a play on the British Invasion in the 1960s, of the American charts — alongside the likes of Justin Bieber and The Weeknd.[414][415][416][417][418] In 2022, music recognition app Shazam revealed Drake to be their most searched artist by users, with music featuring Drake collecting 350 million recognitions; his 2016 single "One Dance" collected 17 million recognitions alone.[419] The Insider declared Drake the artist of the decade (2010s).[412] Regarding the general view that Drake introduced singing in mainstream hip hop, the publication said that at the height of Auto-Tune in hip hop during the late 2000s, "there were virtually no artists who were both a legit rapper and a legit crooner who delivered velvety smooth pop/R&B hybrid vocals that could exist separately from his hip-hop songs."[412] Commenting on Drake's Take Care, Elias Leight of Rolling Stone noticed in 2020 that "now nearly every singer raps, and nearly every rapper sings", as many artists "have borrowed or copied the template of [the album] that the boldness of the original is easily forgotten", according to the writer.[420] Aaron Williams of Uproxx added "jump-starting the sad boy rapper craze along

Yung Filly or simply Filly, is a British YouTuber and musician, born in Colombia and later moving to the United Kingdom Andrés Felipe Barrientos (born 6 August 1995), known professionally as Yung Filly or simply Filly, is a British YouTuber and musician. Born in Colombia and later moving to the United Kingdom, he began his YouTube career in 2013, starting a music career in 2017. Beginning in 2018, he appeared on numerous shows, several of which he hosted. Personal life Andrés Felipe Barrientos was born in Cali, Colombia; he moved to the UK in 1997 and was raised in Orpington in Bromley, south east London.[8][9] He is a supporter of Crystal Palace F.C.[10] He started as a broker at the age of 17.[11] Career Filly began his YouTube career in 2013.[12] His content comprised short skits and comedy Q&As.[13] As well as building his own channel Filly regularly appears on Footasylum's YouTube Channel starring in dating series Does The Shoe Fit[14] as well as Pro:Direct Soccer's YouTube.[15] In 2018, Filly hosted Hot Property on BBC Three;[16] the show was described by The Guardian as "so youthful...that it should come with a new kind of 18 certificate".[17] In 2019, he hosted another show on BBC Three titled Don't Scream.[18] Filly appeared for England in Soccer Aid 2020;[19] during the game, he scored a goal.[20] He also appeared on the first episode of a football rivalry series alongside Chunkz, which was aired on BBC Sport.[21] In 2021, Filly appeared on the first episode of Race Around Britain, hosted by Munya Chawawa.[22][23] It was announced that he would host a spin-off show of Freeze the Fear with Wim Hof titled Munya and Filly Get Chilly in 2022, which was also hosted by Munya Chawawa.[24] He also appeared on The Great Celebrity Bake Off for SU2C[12] and BBC's Would I Lie To You?[13] Musical career In 2017, Filly released his debut single, "Take Time".[25] He would release two songs in 2018, "La Paila" and "Mucho Mas".[26][27] Filly released "Confidence" in 2020, featuring Chunkz and Geko.[28] He would release two other songs with Chunkz in 2020, "Clean Up" and "Hold",[29][30] which peaked at number 67 and 29 on the UK Singles Chart, respectively. He also featured on Javan's "Again".[31] He released "100 Bags Freestyle" in 2021; the song would peak at number 53. He also announced a mixtape titled Last Laugh in an interview with GRM Daily.[32] In 2022, he released a new single titled "Long Time" [33] and later "Day to Day" featuring fellow British rapper and songwriter Chip. motivation award win winner