Money
Money – a word
which has a wide area or a deep meaning. It’s not only to help full to make
such a trade or exchange but it’s also helpful to accumulate &
also have a value or unit of accounting. There are no set patterns to
define the money because its cover a wide area & also have a lot of use
like – units of accounting, mode of payment or accumulation of value.
In simple
words, we can say that money is a unit of accounting or having a valuation
or off payment or medium of exchange which is generally accepted by the public.
Money is also defines by its function like money is what types of activity money
done. Anything which is used for payment or exchange or value of accumulation
is called the money.
Types of
money – we have
three different modes which are used for as money like – metallic, paper
money & acceptable money: -
Metallic
Money – there are
lot of metals which is also used for exchange or use as money because they have
a unique value as well as like to money like – gold or silver or copper etc. we
have three different parts in it like -
 |
| Metallic Money |
ü
Standard
Money – if a coin
has the same value in the form of money or same in the form of metals.
ü
Token
Money – if a coin
has the more face value against in the form of metals.
ü
Subsidiary – all the coin which provide help
to Token money and also support the mode of payment.
Paper Money – all those money which is made by
the paper and issued by the central bank or the Central Government -
 |
| Paper Money |
ü
Representative
Paper Money – money
which is issued against the full value-coin or gold or bullion stock.
ü
Convertible
Paper Money – money
which have not supported by the gold or bullion stock but this paper money will
be exchangeable in gold or bullion on demand of paper money holder.
ü
Inconvertible
Paper Money – that paper
money which is not supported by the gold or bullion and also not able to
exchange with gold or bullion.
ü
Fiat
Money – money which
is issued by the Government order.
Acceptable
Money – money which
is accepted by all the different parties. We divided it in two forms like –
legal Money or Non-Legal Money-
ü
Legal
Tender Money – money
which is accepted by the public or government and also used for exchange or payment.
In Limited Legal Tender Money, we only make a limited payment like not more than
Rs 25 in the form of .25p to 1 rupee coin. In Unlimited Legal Tender Money,
there is no limit for paper note or such coins like 1, 2, 5, 10.
ü
Non-legal Money – money which is not
supported by the law or Central Bank or Central Government.
