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What are the classification of 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. Broadly, money can be classified as: (i) Full Bodied money; (ii) Representative Full bodied money; and. (iii) Credit money.

What is money state the classification of money?

Money can be classified on the basis of relationship between the value of money and value of money as a commodity. Value of money means the face value of money. For example, the face value of five rupees coin is five rupees.

What is money and types of money?

In macroeconomics, money is anything that is widely accepted in exchange for goods and services. ... There are three types of money recognized by economists — commodity money, representative money, and also fiat money. Money that's in the form of a commodity with intrinsic value is considered commodity money.

What do you mean by money discuss the importance and classification of money?

Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.

What is the best definition of money?

We all know what money is. ... Economists, however, have a language all their own when it comes to money. They define it as something that serves as a medium of exchange, a unit of accounting, and a store of value. Money is a medium of exchange in the sense that we all agree to accept it in making transactions.

What is the use of money?

Put simply; money facilitates exchanges in the economy. It also acts a unit of account. In other words, we use it to measure the value of various goods and services in an economy. It essentially serves as a standard of value.

What are the 4 types of money?

The four most relevant types of money are commodity money, fiat money, fiduciary money, and commercial bank money.

What are the 4 main functions of money?

Money serves four basic functions: it is a unit of account, it's a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.

What are the types and functions of money?

Money can be in various forms, such as notes, coins, credit and debit cards, and bank checks. Traditionally, economists considered four main functions of money, which are a medium of exchange, a measure of value, a standard of deferred payment, and a store of value.

What are the 3 types of money?

There are three types of money recognized by economists — commodity money, representative money, and also fiat money. Money that's in the form of a commodity with intrinsic value is considered commodity money. Representative money is not money itself, but something that represents money. It is exchangeable for money.

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