Question

Differentiate between the following: Standard money and Bank money

Answer 1

Standard Money	Bank Money
Standard money is that money which represents the money of account. It is the unit by means of which values of all other medium of exchange are measured. For ex. Rupee is the standard money of India. Likewise every country has its own standard money.	Bank money represents claims on deposits left with banks. People keep parts of their cash as deposits with banks which they can withdraw at any time they like or transfer to someone else. For ex. Cheques, bank drafts, traveller's cheques, credit cards etc.