MONEY

What is money exactly

What is Money
What is money? How do we use money?
Money-The medium of exchange authorised or adopted by a government as part of its currency Real Money- Money that has metallic or other intrinsic value Hard Money- Coined money, in contrast to paper currency Fiat Money- Paper currency not backed by gold or silver

The Currency Act 1965

This act was last amended in 2007

Unit and Denomination

8 Monetary unit and denominations of money (1) The monetary unit, or unit of currency, of Australia is the dollar. (2) The denominations of money in the currency of Australia are the dollar and the cent. (3) A cent is one-hundredth part of a dollar. (4) The equivalent in the currency provided for by this Act of One sovereign or pound in the currency provided for by the repealed Acts is Two dollars, the like equivalent of One shilling is Ten cents and the like equivalent of One penny is five-sixths of a cent. 9 Transactions to be in Australian currency (1) Subject to this section, every sale, every bill of exchange or promissory note, every security for money, and every other contract, agreement, deed, instrument, transaction, dealing, matter or thing relating to money, or involving the payment of, or a liability to pay, money, that is made, executed, entered into or done, shall, unless it is made, executed, entered into or done according to the currency of some country other than Australia, be made, executed, entered into or done according to the currency of Australia provided for by this Act. Currency Act 1965

Payment of debts
11 Payments to be made in currency under this Act (1) Every payment that is made shall, unless it is made according to the currency of some country other than Australia, be made according to the currency of Australia provided for by this Act.
Currency Act 1965

Currency- An item that circulates as a medium of exchange Hard Currency- Currency backed by reserves, especially gold and silver reserves

Legal Tender
16 Legal tender (1) A tender of payment of money is a legal tender if it is made in coins that are made and issued under this Act and are of current weight
Currency Act 1965 Legal Tender- The money approved in a country for the payment of debts, the purchase of goods, and other exchanges for value

Prohibitions
22 Prohibition of other than official coins A person shall not make or issue a piece of gold, silver, copper, nickel, bronze or of any other material, whether metal or otherwise, of any value, other than a coin made or issued under the repealed Acts or under this Act or a British coin as defined by the repealed Acts, as a token for money or as purporting that the holder is entitled to demand any value denoted on it. Penalty: One hundred dollars.
Currency Act 1965

Standard Compositions of Coins

Sections 13 and 14
Denomination of Coin Standard Composition Two hundred dollars.................................. 11/12ths gold and 1/12th other metal One hundred dollars .................................. 11/12ths gold and 1/12th other metal Fifty dollars ............................................... 11/12ths gold and 1/12th other metal Twenty-five dollars ................................... 11/12ths gold and 1/12th other metal Ten dollars................................................. 92.5% silver and 7.5% other metal Fifty cents.................................................. Copper and nickel Twenty cents ............................................. Copper and nickel Ten cents ................................................... Copper and nickel Five cents................................................... Copper and nickel Two cents .................................................. Copper, tin and zinc One cent .................................................... Copper, tin and zinc
Currency Act 1965

Currency Regulations

The Currency Act 1965 must be read in conjunction with the Currency Regulations.

$50
(viiiH) in the case of a coin of the denomination of $50,
(B) the inscription THE AUSTRALIAN NUGGET 1/2 OZ. 9999 GOLD, an inscription of the name of a species of macropod marsupial and a representation of an animal of that species superimposed on a sunburst design, and the inscription (in figures) of a year, all encircled by raised beads inside the rim of the coin;
Currency Regulations

Coins measurements
All coins so described in the regulations are accompanied by all the correct dimensions. This prevents any counterfeiting of the coins

Who makes Australias coins

So who makes the Plastic Money in Australia

Quite obviously the Royal Australian Mint does not produce the plastic Australian notes, so why would they hand this out to private companies?

Who is Note Printing Australia?

They make these notes for Australia

Note Printing Australia

As seen Note Printing Australia is a wholly owned subsidiary of Reserve Bank of Australia.

So who is the Reserve Bank of Australia?

Who is the RBA?

The company Reserve Bank of Australia is a company doing joint venture business with other companies

So who is Securency as mentioned here?

Securency International was formed in a joint venture between the RBA and Innovia

Question
If the money of a nation is of the utmost importance then why have they let a company print the notes that we use every day?

Why do they not let Note Printing Australia produce the gold and silver coinage as well? Maybe the gold and silver coinage are from the real world while the notes are from some sort of game

What are Australian notes?

"This Australian note is legal tender throughout Australia and it's territories."

More Question
Note- A written promise by one party (the maker) to pay money to another party (the payee) or to bearer If a note is a promise to pay money then is that note the money? If it is not the money then what exactly is it? More importantly where is the money that backs the promise?

More Questions
Can someone please explain what is happening here on the next few pages?

$50 gold Australian coin Why does it take 18 of these notes

to buy the coin on the left? They are both of the same face value

$100 gold Australian coin Why does it take 17 of these notes

to buy the coin on the left? They are both of the same face value

Same here again

Can someone please explain what is happening here again? A $5 coin for $87

Metal prices
Bullion prices as at 24-10-12. Metal prices are only a few dollars cheaper than the coins, this explains the manufacturing costs of the coins.

The 2 Worlds
There appears to be 2 worlds. One of real money of substance and value, the other of fiat money of no substance and no value.

Real Money- Money that has metallic or other intrinsic value Hard Money- Coined money, in contrast to paper currency
Fiat Money- Paper currency not backed by gold or silver

Which world are you in?

Are you playing the game Monopoly, the game Australia or living in the real world?