The terms money and currency are used interchangeably. However, they have some differences. The meaning of money is more generic. Currency is a type of money. For example, we often use currency when referring to fiat currencies. Commodity money is another type of money. There are differences between fiat currency and commodity money. One difference lies in how value is stored or derived for them. To explain the difference, we need to talk about the value of money first.
Money has two kinds of value: the relative value and the absolute value. The relative value of money refers to the purchasing power of money that can be used to buy goods and services. For example, a Big Mac costs different amounts at various cities in the US; the same Big Mac is more expensive in a big city such as New York City than in a small city located in a less affluent...
