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Sunday, 30 March 2014

Difference between monetary values and monetary items

All economic/accounting/financial values expressed in terms of the monetary unit of account - whether they refer to non-monetary or monetary items - are stated as monetary values: the unit of account is a monetary unit of account.

Definition: Monetary items constitute the money supply. 

When an item is part of a country´s money supply, then it is a monetary item. It is expressed as a monetary value since it is expressed in terms of the monetary unit of account.

All non-monetary items - variable and constant real value non-monetary items - expressed in terms of the monetary unit of account are stated as monetary values, but they are not monetary items.

All monetary items are monetary values but not all monetary values are monetary items.

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