In the context of banking, federal funds that are good the same day in contrast to clearinghouse funds, which typically require three days to clear or involve a one-day float. Good money is also a concept discussed in Gresham's Law, which states that currency of superior intrinsic value will be driven out of circulation by currency of lesser intrinsic value.
A theory in economics that suggests bad money drives out good money from circulation. When two forms of commodity money are in circulation which are accepted by law as having similar face value, the more valuable one will be hoarded and the less valuable one will be spent.
