How can money be classified ?

1.	How can money be classified ?
Answer» Money can be classified as : a) Full bodied money – This is a money whose value as a commodity for non monetary purpose is as great as its value as money. (Intrinsic value = Extrinsic value) b) Representative full bodied money – Its a paper money which represents in circulation an amount of money with a commodity value equal to the value of the money. (Extrinsic value is greater than intrinsic value) c) Credit money – It’s the money whose value as money is greater than the commodity value of the material from which money is made. Credit money may be of token coins, representative token money, circulating promissory notes issued by the central bank and deposits at banks.

Answer»

Money can be classified as :

a) Full bodied money – This is a money whose value as a commodity for non monetary purpose is as great as its value as money. (Intrinsic value = Extrinsic value)

b) Representative full bodied money – Its a paper money which represents in circulation an amount of money with a commodity value equal to the value of the money. (Extrinsic value is greater than intrinsic value)

c) Credit money – It’s the money whose value as money is greater than the commodity value of the material from which money is made. Credit money may be of token coins, representative token money, circulating promissory notes issued by the central bank and deposits at banks.

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