Venus Community Bank
Where your money is safe
What are the functions of money?
- Medium of Exchange
Money must serve as the means through which goods and services can be exchanged. Money allows for the precise and flexible pricing of goods and services, making any economic transaction convenient.
- Standard of Value
Money also allows people to measure the relative costs of goods and services. The basic monetary unit in the United States is the dollar, which serves as the standard by which the economic worth of all goods and services can be expressed and measured.
- Store of Value
Finally, money holds its value over time. People, therefore, do not need to spend all their money at once or in one place; they can put it aside for later use. You know that people will accept your money wherever and whenever you want to use it to pay for a good or service, don’t you?
WHAT TYPES OF MONEY ARE THERE?
- COMMODITY MONEY
Items used as commodity money have value in and of themselves, apart from their value as money. Over the course of history, gold, silver, precious stones, salt, olive oil, and coins made from precious metals have all been valued enough to be used as money.
- REPRESENTATIVE MONEY
Representative money is paper money backed by something tangible that gives it value. These practices signal the beginning of the widespread modern use of paper money.
One problem with representative money is that its value fluctuates with the supply and price of gold or silver, which can cause problems of inflation or deflation.
- FIAT MONEY
Fiat money has no tangible backing, but it is declared by the government that issues it, and accepted by citizens who use it, to have worth. Coins contain only a small amount of precious metal that is worth far less than the value of those coins. Paper money has no intrinsic value, and people cannot exchange it for a certain amount of gold or silver.
The value of the U.S. dollar was linked to the value of gold until 1971. Since then, a $10 bill can no longer be exchanged for gold.
A crucial role of the government in maintaining the value of fiat money is controlling its supply.
What services do we provide?
- Customers Can Store Money
Banks are safe places where you can store your money and other valuables. Your bank account will also be insured in case the bank fails, so if we go to bankrupt, you’ll recover your money. You can also store important papers and valuables through the use of safe deposit boxes.
- Customers Can Earn Money
When our clients deposit their money in bank accounts, they can earn money on their deposits. Savings accounts and some checking accounts pay some level of interest. We also offer other accounts, such as money market accounts and certificates of deposits, that pay a higher rate of interest.
- Customers Can Borrow Money
You can also borrow money through the practice of fractional reserve banking. The percent of deposits that we must keep in reserve is set by the Fed.
We provide our customers with different loans for different circumstances.