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What are the 4 types of money?
In a Nutshell. The four most relevant types of money are commodity money, fiat money, fiduciary money, and commercial bank money. Commodity money relies on intrinsically valuable commodities that act as a medium of exchange. Fiat money, on the other hand, gets its value from a government order.
What are the 3 types of money?
There are three types of money recognized by economists — commodity money, representative money, and also fiat money.
What are the 3 functions of money?
Functions of Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.
What is money explain?
Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange. A unit of account. A store of value. And, occasionally, a standard of deferred payment.
How is money classified?
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. On the other hand, if face value is greater than the commodity value of coin, it is called token coin. These days, coins are token coins.
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 main functions 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. Medium of exchange. Money's most important function is as a medium of exchange to facilitate transactions.
What are the 7 characteristics of money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
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