Distinguish between -

Paper money and metallic coins

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Solution

Basis of difference Paper money Metallic money

1. Definition Paper money is the money that consists of currency notes issued by the government or the central bank of that country. Precious metals or any other metal having high intrinsic value used as money are called metallic money.

2. Developed It was developed as a substitute of metallic currency. It was developed before the development of paper money.

3. Durability Paper money is less durable. Metallic money is highly durable.

4. Portability It possesses a higher degree of portability. It possesses a lower degree of portability.

5. Examples Paper notes of Rs. 5, Rs. 10 etc. Gold coins, silver coins etc.

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