Currency and money are often used interchangeably, but they have distinct meanings in economics. Currency refers to the physical form of money – the coins and banknotes used to conduct transactions. Money encompasses currency along with other less tangible forms such as bank deposits. While currency has a physical manifestation, money can be any medium…
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Difference Between Depreciation and Devaluation of Currency
While both result in a lower currency value, depreciation and devaluation differ fundamentally in their origins and processes. Depreciation unfolds gradually as market dynamics of supply and demand slowly chip away at a currency’s worth when economic conditions shift. In contrast, devaluation occurs suddenly when monetary authorities take direct action to intentionally reset their currency’s…
Difference Between Consumer Market and Business Market
When selling a product or service, understanding the key differences between consumer and business market is essential. Although they exchange goods for payment, the purchasing motivations and processes in B2C (business-to-consumer) and B2B (business-to-business) vary greatly. Factors like order volume, buyer rationality, purchase frequency, decision making unit size, and price sensitivity distinguish these segments. Developing…