A standard of deferred payment is the accepted way, in a given market, to settle a debt – a unit in which debts are denominated. It is one of the defining functions of money; for example, while the gold standard reigned, gold or any currency convertible to gold at a fixed rate constituted such a standard. As of 2010, the US dollar and the euro are the most generally accepted standards for international settlements.
The term "standard of deferred payment" is not as widely used as other terms for functions of money, namely medium of exchange, store of value, and unit of account, though it is distinguished in some works.
Read more about Standard Of Deferred Payment: Functions of Money, Relation To Debt, Examples
Famous quotes containing the words standard of, standard and/or payment:
“A disposition to preserve, and an ability to improve, taken together, would be my standard of a statesman.”
—Edmund Burke (1729–1797)
“Liberty requires opportunity to make a living—a living decent according to the standard of the time, a living which gives a man not only enough to live by, but something to live for.”
—Franklin D. Roosevelt (1882–1945)
“The payment of debts is necessary for social order. The non-payment is quite equally necessary for social order. For centuries humanity has oscillated, serenely unaware, between these two contradictory necessities.”
—Simone Weil (1909–1943)