Debt and Notes on Money
Financial transactions typically involve the use of money. Money is that which is generally recognized and accepted as legal tender, in payment for goods and services which have been acquired, as well as in payment of debts. The most common functions of money are usually categorized into the following: as a unit of account, a measurement of value, as a medium of exchange in some transaction, and in some cases, a standard of deferred payment. Money generally is an abstraction, idea or concept, and the recognized representations of money are the physical bills or coins which individuals and groups carry about and trade with.
There are many terms and systems creditors employ in order to solidify their claims on a debt. Generally, a debt obligation is deemed to be secure when the creditors have proprietary access to a company's assets, or else prior to making any definitive action required to satisfy the debt. A debt is considered unsecure in cases of financial situations where the creditors have no business claim to the assets of the borrower in order for the debt to be fulfilled.
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