The Difference Between Currency and Currency

The Difference Between Currency and Currency that Must Be Known

The term currency and demand deposits may be more often we learn when in school. Even so, in the economic and business world, it is very important to know about these two types of money, as well as the difference. Money is a payment instrument that plays an important role in the economic life of every citizen. Then what’s so special about currency and demand deposits? We will discuss in this article.
The Difference Between Currency and Currency that Must Be Known

Currency has a meaning as a form of currency that is very often encountered in our daily lives. There are two forms of currency, namely banknotes and coins. Currency is a legal payment instrument and must be accepted by the community (in accordance with Central Bank Law no.13 1968). Bank Indonesia is the party authorized to print this currency. The largest nominal currency in the Republic of Indonesia is banknotes in the amount of Rp. 100,000 and the smallest nominal is 1,000 coins.
Currency from practicality

Currency in the form of coins and paper is certainly considered practical. The shape and weight are also light and don’t bother the people who carry them. Currency is also easier to spend, compared to demand deposits.
Currency from the security side

Currency is easier to store or save. When our currency is lost, we can make a report to the appropriate security authorities. However, the possibility of the money back is very small because there is no identity of us, making it easy for other people to spend and change hands with others.
Giral money from the practical aspect

Understanding demand deposits is proof of bills at financial institutions (banks) that are used at any time as a means of personal and corporate payments. Current accounts come in the form of demand deposits, checks, bilyet, share certificates and so forth. Demand deposits are certainly economically valid, but not legally valid. Not all people can have demand deposits, like currency. Demand deposits are generally only owned by certain circles.
Giral money from the security side

Demand deposits generally include the identity of the owner, so that if the demand deposits disappear, then it is easy to trace. If it turns out the owner loses his deposit, then it can be reported to the bank, so that blocking is done, and protected from abuse by irresponsible parties.

From the explanation above, it can be concluded that currency and demand deposits have their respective advantages and disadvantages. Even so, both are payment instruments in financial transactions both in person and currency and demand deposits for business purposes.

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