A
currency (from , "in circulation", from ) in the most specific use of the word refers to
money in any form when in actual use or circulation as a
medium of exchange, especially circulating
banknotes and
coins. A more general definition is that a currency is a
system of money (monetary units) in common use, especially in a nation. Under this definition, British pounds, U.S. dollars, and European euros are examples of currency. These various currencies are recognized stores of value, and are traded between nations in
foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.