News Types Or Forms Of Money
There are many forms of money. Following are the primary forms of money.
1. Metallic Money
2. Paper Money
3. Bank Money
4. Legal Money
5. Plastic Money
6. Near Money
1. Metallic Money
The money made of whatever metallic element such equally gold, argent etc is called metallic element money. It exists inwards the shape of coins. In our province the coins of Rs. 1, 2 in addition to v are the electrical current examples of metallic element money. Due to its weight, it is hard to role this money inwards large quantity.
Therefore coins are used inwards small-scale amounts exclusively the metallic element money has the next 2 types:
A) Full Bodied Coins
B) Token Money
A) Full Bodied Coins
When the appear upward value of the money is equal to the value of metallic element contained inwards the coin, the money is called a total bodied coin. The golden in addition to argent coins of onetime times are examples of total bodied coins.
B)Token Money
When the appear upward value of a money is greater than the value of the metallic element it contains, it is called token money. In our country, all the coins are token money.
2. Paper Money
Paper money refers to notes of dissimilar value made of newspaper which issued past times the key banking venture or regime of the country.
The newspaper money tin live classified into next types:
A) Representative Money
B) Convertible Money
C) Inconvertible Money/fiat Money
A) Representative Money
Representative money is that money which is fully backed past times equal metallic element reserve. The holder of a banking venture annotation tin easily larn it converted into metallic element (gold & silver) shape on demand
B) Convertible Money
It is the shape of money which tin live converted into gold, argent i.e. metallic element reserves. But all these notes issued past times the regime are non fully backed past times gold. The amount of golden kept past times the regime is a detail proportion of the notes issued.
C) Inconvertible/Fiat Money
Inconvertible or fiat money is i that nosotros possess got inwards our bag in addition to role inwards daily business. The appear upward value of such money is to a greater extent than than the value of the paper. e.g. the value of the newspaper of 100 rupee annotation is well-nigh zip but its purchasing ability is equal to Rs.100. it has this value because it has been declared equally legal money past times the government, in addition to thus it is mostly accepted equally a medium of exchange.
3. Bank Money
This is the most modern shape of money this money is too called credit. It exclusively consists of cheques, neb of telephone commutation in addition to drafts.
A) Cheques
A banking venture friction match is an unconditional venture past times the customer on his banking venture to pay a certainly total of money to him or to whatever other party.
B) Bills of Exchange
A neb of telephone commutation is an venture past times the drawer to the drawee to pay a total of money to the drawer or to whatever other party.
C) Draft: Draft is a banking venture friction match drawn past times a banking venture on its ain branch or the branches of merely about other banking venture requesting it to pay on ask a specific amount to a someone named on it.
4. Legal Tender Money
The money that a someone accepts equally a way of payment in addition to inwards discharge of debt is called legal tender notice. All the notes in addition to coins issued past times the govt. in addition to the key banking venture are legal tender money. Legal tender money is of 2 types:
A) Limited Legal Tender Money
The money which tin live used a way of payment upward to a certainly bound is called express tender money e.g. coins.
B) Un-limited Legal Tender Money
The money that tin live used a hateful of payment upward to whatever bound or amount e.g all the notes issued past times SBP.
Non legal tender money
Bank money is the shape of cheques, bills of exchange, a promissory notes is non legal tender money. Robertson says it “optional money”. So non legal tender money is money which a someone may or may non convey equally a hateful of payment.
5. Plastic Money
Plastic money way the credit cards, smart cards. Plastic cards which possess got peculiarly printed develop of characters. Recently the role of this money has increase.
6. Near Money
A type of money which tin easily live converted into money. It included deposits, regime bonds, printed bonds etc.