Information on money

This information hub has a list of financial terms containing the word ‘money’.

The English word ‘money’ comes from Old French ‘monoie’ which meant ‘coin, currency, change, money’ (Modern French ‘monnaie’). The French term came from the Latin word ‘moneta’, which was a mint (place for making coins). Moneta was the surname of the Roman goddess Juno.

In the early nineteenth century, the English word ‘money’ also included paper money.

‘Money’ in Spanish is dinero, French – argent, German – Geld, Portuguese – dinheiro, Russian – деньги, Japanese – お金, and Chinese – 钱.

Broad Money – includes narrow money (coins, banknotes and checking accounts in banks), plus demand deposits at commercial banks and other assets that can be converted into cash rapidly. Broad money usually refers to M3.

Money – any tangible or intangible item that represents a unit of value, such as a dollar or pound. It can be used as a medium to exchange goods and do business. Money has existed for thousands of years.

Money Illusion – the mistaken idea that a dollar today is the same dollar tomorrow or next year. Focusing on the nominal value of a unit of money, rather than its purchasing power, which declines with inflation over time.

Money Laundering – the process of converting money obtained from illegal activities (dirty money) into funds which seemingly originated from legitimate activities (clean money). It is a massive multi-billion dollar global business.

Moneylender – a person or group of individuals who lend money, typically outside the official banking system. The interest rates they charge borrowers are notoriously exorbitant.

Money Supply – the total amount of monetary assets that a country’s economy has access to in a given period. Money supply is measured by monitoring coins and banknotes in circulation, plus funds deposited in banks and other financial institutions.

Narrow Money – refers to assets in their most liquid form such as coins, banknotes, traveler’s checks and money deposited in bank accounts that can be accessed instantly. Also called M1 (UK: M0).

Near Money – assets that are fairly liquid, but not as liquid as pure cash. Examples include short-term money market instruments and some types of funds deposited in banks. Also known as quasi-money.

New Money – wealth created during the owner’s lifetime, rather than being inherited. The opposite of old money.

Old Money – refers to the money of rich families that has been inherited rather than created during the owner’s lifetime. The term may also refers to the families themselves, as well as specific neighborhoods. In Britain the term usually only applies to aristocrats.

Smart Money – has several meanings. 1. The collective force of big money that can direct how markets move. 2. Investments by shrewd investors who are able to identify or foresee market trends before anyone else. 3. Venture capital in which not only money is invested, but also the investor’s time and know how. 4. In gambling, where the good bets are going.

Time Value of Money – the (accurate) notion that money is worth more now than tomorrow or next year, because it can earn interest and grow. Also known as present discounted value.