Question

Explain The Various Classification Of Money.

Answer 1

Money can be classified based on the relationship between the value of money. Money can be classified as:

• Credit Money

Credit money refers to the money whose intrinsic value (as a commodity) is much lower than its face value.

• Full-Bodied Money

Any unit of money whose face value and intrinsic value are equal is known as full-bodied money,

• Representative Full-bodied Money

It refers to money which is usually made of paper. The value of representative full-bodied money is much higher than its value as a commodity.

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