iPedia Free Information Center

Information about Standard Of Deferred Payment

A standard of deferred payment is the accepted way (in a given market) to settle a debt. For example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard. As of 2003, the US dollar and the euro are the most generally accepted standards for international settlements.

However, for certain kinds of transactions (such as for illegal goods like drugs or weapons), gold or diamonds may be preferred as the medium of exchange — there being no recourse in case of counterfeit currency being used — and there is rarely any deferral of payment: if there is, it will most likely be stated in dollars.

This is distinct from the store of value function which relates to the saving, storing, and retrieval of value, and from the unit of account function which requires fungibility so accounts in any amount can be readily settled. It is also distinct from the medium of exchange function which requires durability when used in trade, and a minimum of opportunity to cheat others — as the diamond or gold example illustrate.

When currency is stable, money can serve all four functions. When it isn't, or when complex and volatile forms of financial capital are involved, some may wish to identify a single standard of deferred payment to avoid cheating by selecting a denominator of debt that one believes to be dropping in value.

Historically, there have been many times when creditors have had to hide from debtors to avoid being paid off in near worthless currency, typically following hyper-inflation.

Time-based currency such as Ithaca Hours establishes fixed amounts of human labour as the only standard of deferred payment.

See also

market is a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. It is one of the two key institutions that organize trade, along with the right to own property.
..... Click the link for more information.
Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned.
..... Click the link for more information.
For other uses, see Gold standard (disambiguation).
The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.
..... Click the link for more information.
GOLD refers to one of the following:
  • GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade).
  • GOLD (parser) is an open source BNF parser.

..... Click the link for more information.
currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value. A currency is the dominant medium of exchange.
..... Click the link for more information.
20th century - 21st century - 22nd century
1970s  1980s  1990s  - 2000s -  2010s  2020s  2030s
2000 2001 2002 - 2003 - 2004 2005 2006

2003 by topic:
News by month
Jan - Feb - Mar - Apr - May - Jun
..... Click the link for more information.
United States dollar
dólar estadounidense (Spanish)
dólar amerikanu (Tetum)
dólar americano
..... Click the link for more information.
Euro
Ευρώ (Greek)
Евро[1]
..... Click the link for more information.
Economic systems

Ideologies and Theories
Primitive communism
Capitalist economy
Corporate economy
Fascist economy
Laissez-faire
Mercantilism
Natural economy
Social market economy
Socialist economy
Communist economy


..... Click the link for more information.
illegal drug trade is a global black market consisting of the cultivation, manufacture, distribution and sale of illegal drugs. While some drugs are legal to possess and sell, in most jurisdictions laws prohibit the trade of certain types of drug.
..... Click the link for more information.
Diamond is an allotrope of carbon. It is the hardest known natural material and the third-hardest known material after aggregated diamond nanorods and ultrahard fullerite. Its hardness and high dispersion of light make it useful for industrial applications and jewelry.
..... Click the link for more information.
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.

In a barter system, there must be a coincidence of wants before two people can trade - they must want exactly what the other has to offer, when and where it is offered,
..... Click the link for more information.
worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.


A counterfeit is an imitation that is made usually with the intent to deceptively represent its content or origins.
..... Click the link for more information.
To act as a store of value, a commodity, a form of money, or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved.
..... Click the link for more information.
A unit of account is a standard monetary unit of measurement of the market value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets.
..... Click the link for more information.
A medium of exchange is an intermediary used in trade to avoid the inconveniences of a pure barter system.

In a barter system, there must be a coincidence of wants before two people can trade - they must want exactly what the other has to offer, when and where it is offered,
..... Click the link for more information.
currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value. A currency is the dominant medium of exchange.
..... Click the link for more information.
Money is any token or other object that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts.
..... Click the link for more information.
Financial Capital vs. Real Capital

Financial capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital like equipment for producing goods/services.
..... Click the link for more information.
A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second
..... Click the link for more information.
Debtor

1. Respectively, a person who owes a debt and a person to whom the debt is owed.

Usually the debtor has received something from the creditor, in return for which the debtor has promised to make repayment at a later time.
..... Click the link for more information.
hyperinflation is inflation that is "out of control," a condition in which prices increase rapidly as a currency loses its value. No precise definition of hyperinflation is universally accepted. One simple definition requires a monthly inflation rate of 20 or 30% or more.
..... Click the link for more information.
time-based currency is an alternative currency where the unit of exchange is the hour.

Time-based currencies value everyone’s contributions equally. One hour equals one service credit.
..... Click the link for more information.
Ithaca Hours is a local currency in Ithaca, New York. It is credited as the first modern local currency and has inspired similar systems throughout the world.

Origin


..... Click the link for more information.
The Bretton Woods system of international monetary management established the rules for commercial and financial relations among the world's major industrial states. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary
..... Click the link for more information.
The value of life (or price of life) is an economic or moral value assigned to life in general, or to specific living organisms. In social and political sciences, it is the marginal cost of death prevention in a certain class of circumstances.
..... Click the link for more information.


This article is copied from an article on Wikipedia.org - the free encyclopedia created and edited by online user community. The text was not checked or edited by anyone on our staff. Although the vast majority of the wikipedia encyclopedia articles provide accurate and timely information please do not assume the accuracy of any particular article. This article is distributed under the terms of GNU Free Documentation License.
Herod_Archelaus


page counter