http://www.lendinguniverse.com/borrowersconstructionloan.asp new construction loan rates There are three major types of money used in the United States today-coins, paper money, and checking deposits. Until about 300 years ago metal coins were the only kind of money in use. But in the United States, and almost everywhere else today, coins are only small change. In the U.S. in 1970 there were $6 billion worth of coins in use, compared with $52 billion worth of paper money in circulation and bank checking accounts amounting to $163 billion. When we say that Yap islanders use stones for money, we must have some test or definition in mind by which to tell whether something is or is not being used for money. Money is anything that is generally acceptable in exchange for goods and services and for payment of debts. It need not have any other use. People mainly accept it in the expectation of passing it on to someone else in a further exchange. An essential characteristic of money is general confidence in its acceptability as a medium of exchange. The value of the metal in our coins is deliberately kept below the nominal value of the coins so that it won’t be profitable to melt them down for their metallic content. When the price of silver thredtened to reach the point where it would pay people to melt down dimes and quarters, the Treasury quickly substituted copper and nickel. The U.S. mint stands ready to supply coins in exchange for other kinds of money, and it will reverse the exchange whenever banks bring in surpluses of coin. The amount of coin in circulation, then, is just what the public wants it to be.
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