The value of money is determined by the

The value of money is determined by the general price level. In other words, the purchasing power of money is determined by the amount of goods and services it can buy. If the general price level of goods and services in an economy is high, the value of money will be low and vice versa. The rate of interest, quantity of money in circulation, level of economic development, and weight of the currency notes and coins are not direct determinants of the value of money, but they can affect it indirectly.