Distinguish between Commodity Money and Metallic Money.
1. Commodity money is that
money whose face value is equal to its commodity value whereas metallic money
is that money whose value of money (face-value) is greater than the
commodity value (intrinsic value) of money.
2. In other words, in commodity
money face value of the money like coin is equal to its intrinsic (commodity)
value whereas in metallic money the value of money like coin is higher than its
intrinsic (commodity) value.
3. Commodity money is also
known as full-bodied money as it is made of the same worth material as its face
value whereas metallic money is made of metals which has less value then its
face value.
4. Example:Commodity money includes gold
coin, silver coin etc. whereas metallic coin includes 1 rupee coin, 5 rupees
coin etc.
1. Commodity money is that money whose face value is equal to its commodity value whereas metallic money is that money whose value of money (face-value) is greater than the commodity value (intrinsic value) of money.
2. In other words, in commodity money face value of the money like coin is equal to its intrinsic (commodity) value whereas in metallic money the value of money like coin is higher than its intrinsic (commodity) value.
3. Commodity money is also known as full-bodied money as it is made of the same worth material as its face value whereas metallic money is made of metals which has less value then its face value.
4. Example:Commodity money includes gold coin, silver coin etc. whereas metallic coin includes 1 rupee coin, 5 rupees coin etc.
