Because paper money is only a symbol of value, in fact, it has no value at all, that is to say, the government has given paper money a certain value by using its authority. For example, now a new political party, as the ruling party, redefines a kind of paper money as circulating currency. Of course, we can't buy anything in RMB now.

Means of circulation and means of payment, as the name implies. That is, it provides people with a function of economic circulation and value payment. Do you understand now?

"Does anyone still keep gold in the bank?" Congratulations! Only in this way can we ensure that we only earn money and not lose money, which is the most reliable financial management method.

Because you put the money in the bank, the bank uses the money to provide loans to customers, which is essentially circulation. It is stipulated in the book that money exits the circulation field and is preserved as a representative of social wealth. At this time, the money executor stored the means.

Do you understand?

(1) The means of currency storage must be metal currency (full value gold and silver). When the amount of metal money exceeds the amount needed for circulation, it will exit circulation and be stored; When the amount of metal money is less than the amount needed for circulation, it will exit storage and be circulated. Generally speaking, it will not depreciate.

(2) Paper money is only a symbol of value, and it has no value in itself. The storage of paper money may depreciate, and saving is not equal to storing. Banks lend money saved by depositors to make profits.