Can You Describe The Various Forms Of Money?

Question

Can You Describe The Various Forms Of Money?

3 Answers

Answer Question

Answer 1

Metallic Money: It consists of coin made of Gold, Silver, copper, or Nickel. It varies in weight fineness and value. All coins are stamped with dye. It has two kinds.
Full Bodied Money: The full bodied money is that whose face value is equal to the value of metal contained in it.
Token Money: Its face value or printed value is higher than value of the metal contained in it.
Legal Tender Money: any means of payment which has state sanctioned be hind it and a debtor can legally compel his creditor to accept it is called legal tender.
It has two kinds,
Limited Legal Tender: Legal Tender Money is that which a creditor can accept in settlement of claims up to certain limit only. So legal tender money can be forced upon others in payments up to certain extent.
Unlimited Legal Tender: Unlimited legal tender money is that which can be forced upon others in payment up to unlimited extent.
Paper Money: Paper money consists of notes issued by the Central Bank and by the Govt. For example one Rupee note is issued by the Govt. and other notes are issued by State Bank in Pakistan.

Answer 2

There are different forms of money. One is called the paper money and the other is called the credit money. Both are used to carry the transaction in the country. The paper money and the credit money is serves as the medium for the measure of any thing in the country. The money is issued and controlled by the government so both are use in the country on large scale.

The paper money is a form of money which is needed in order to make payments for the daily routine transactions however the credit money is used for the transaction in which the plastic card is used for the transactions. The credit money is also called the plastic money because it is in the form of the plastic which is used by the users in order to conduct the transaction for the purchasing. The banks are trying to increase the credit money in the economy due to the convenience and usability of the credit money.

The government is only allowed to issue the paper money in the country and they control the flow of money in the economy.

Answer 3

(A) : Metallic Money: It consists of coins made of gold, silver, cooper or nickel. It has two kinds
1. Standard money: Standard money is that whose face value is equal to the real value.
2. Token money: It face value or printed value is higher than the value of metal
Contain in it. Now a day's all coins in Pakistan are the examples of token money.

(B): Paper money: Paper money consists of notes issued by the central bank. Paper money has three kinds
1. Representatives paper money: Representative's paper money is that money which has a 100per cent metallic reserve held by the Government. and payable to the holder of paper money on demand.

2. Convertible paper money: Convertible paper money is that which can be exchanged for full bodied money on demand.
3. Inconvertible paper money: Inconvertible paper money is simply money which can not be converted into full bodied money. The issuing authority has to keep a certain percentage in the form of gold or silver against the note issued.

(C): Credit Money: It is also called the bank money. All the bank drafts, cheques and bills of exchange and credit cards are called the credit money. This money is not legal tender money. But it is accepted as a medium of exchange on account of confidence in the issuing authority.