What is money and types?
Money comes in three forms: commodity money, fiat money, and fiduciary money.
Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.
Money functions as a medium of exchange, a unit of account, and a store of value..
What are the 4 functions of money?
whatever serves society in four functions: as a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
What are the different types of monies?
The Four Different Types of MoneyCommodity Money. Commodity money is the simplest and, most likely, the oldest type of money. … Fiat Money. Fiat money gets its value from a government order (i.e., fiat). … Fiduciary Money. … Commercial Bank Money. … In a Nutshell.
What are 2 types of money?
As members of the public, we only have access to two of them – physical money and commercial bank money.Physical money. Physical money, meaning cash and coins, is created by the US Treasury. … Central bank reserves. … Commercial bank money.
What are the 3 functions of money?
To summarize, money has taken many forms through the ages, but money consistently has three functions: store of value, unit of account, and medium of exchange. Modern economies use fiat money-money that is neither a commodity nor represented or “backed” by a commodity.