What is the three classification of money?

Some of the major leads under which money has been classified are as follows: (i) Full bodied Money (ii) Representative Full-bodied Money and (iii) Credit Money. Money can be classified on the basis of relationship between the value of money as money and the value of money as a commodity. (iii) Credit money.

What are the 6 types of money?

The various types of money are:
  • Commodity Money.
  • Fiat Money.
  • Fiduciary Money.
  • Commercial Bank Money.
  • Metallic Money.
  • Paper Money.
  • Reserve Money.

What are the functions and classification of money?

To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.

What are the 8 types of money?

Modern Forms of Money:
  • Currency: The currency is a country’s unit of exchange issued by their government or central bank whose value is the basis for trade. …
  • Deposit Money or Bank Money: …
  • Legal Tender Money (Force Tender): …
  • Near Money: …
  • Electronic Money: …
  • Fiat Money:

What are the 4 main functions of money?

Functions of Money
  • A medium of exchange.
  • A standard of deferred payment.
  • A store of wealth.
  • A measure of value.

What are the 6 characteristics of money?

Terms in this set (6)
  • Durability. Durability. …
  • Portability. People need to be able to take money with them as they go about their business.
  • Divisibility. To be useful, money must be easily divided into smaller denominations , or units of value.
  • Uniformity. …
  • Limited Supply. …
  • Acceptability.

What are the 5 main functions of money?

The following points highlight the top six functions of money.
  • Function # 1. A Medium of Exchange: …
  • Function # 2. A Measure of Value: …
  • Function # 3. A Store of Value (Purchasing Power): …
  • Function # 4. The Basis of Credit: …
  • Function # 5. A Unit of Account: …
  • Function # 6. A Standard of Postponed Payment:

How many kinds of money are there?

There are 180 currencies recognized as legal tender in United Nations (UN) member states, UN General Assembly non-member observer states, partially recognized or unrecognized states, and their dependencies.

What is forms of money?

Money is what money does.
  • Commodity money. A basic form of money is commodity money. …
  • Coins. …
  • Paper money. …
  • Banknotes. …
  • Book money (giro money) …
  • Trust as the bedrock.

What is the difference between fiat money and fiduciary money?

Answer: Fiat money refers to money backed by order or authority of the government. Fiduciary money refersto money backed up by trust between the payer and payee.

What is the difference between full bodied money and credit money?

Full bodied money refers to that money whose intrinsic value (value of the metal) is equal to the face value of the engraving on the currency, whereas, Credit money refers to that money whose claim is falling due in future. Nowadays, individuals frequently use credit money in the form cheques, drafts, credit cards etc.

What is called money?

What is money? Money is a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed. It circulates from person to person and country to country, facilitating trade, and it is the principal measure of wealth.

What are the 4 main functions of money?

Functions of Money
  • A medium of exchange.
  • A standard of deferred payment.
  • A store of wealth.
  • A measure of value.