Explain The Concept Of Modern Money?

The age of commodity money gave way to the age of paper money. The essence of money is now laid bare. Money is wanted not for its own sake but for the things it will buy. We do not wish to consume money directly; rather, we use it by getting rid of it. Even when we choose to keep money, it is valuable only because we can spend it later on.
The use of paper money has become wide spread because it is a convenient medium of exchange. Currency is easily carried and stored. The value of money can be protected from counterfeiting by careful engraving. The fact that private individuals cannot legally create money keeps it scarce. Given this limitation in supply, currency has value. It can buy things. As long as people can pay their bills with currency as long as it is accepted as a means of payment, it serves the function of money.
Most money today is bank money deposit in a bank or other financial institution. Checks are accepted in place of cash payment for money goods and services. In fact, if we calculate the total dollar amount of transactions, nine tenths take place by bank money, the rest by currency.

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