ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Metallic Money With the progress of the trade, commodity money was converted into metallic money. Metals like silver, copper, gold, etc., were commonly used as they are easy to use and their quantity can be easily determined. Metallic money was the main type of money throughout a huge part of recorded history.

Detailed explanation-2: -M1 includes those assets that are the most liquid such as cash, checkable (demand) deposits, and traveler’s checks. M2 includes M1 plus some less liquid (but still fairly liquid) assets, including savings and time deposits, certificates of deposit, and money market funds.

Detailed explanation-3: -M1, M2 and M3 are measurements of the United States money supply, known as the money aggregates. M1 includes money in circulation plus checkable deposits in banks. M2 includes M1 plus savings deposits (less than $100, 000) and money market mutual funds. M3 includes M2 plus large time deposits in banks.

Detailed explanation-4: -The 4 different types of money as classified by the economists are commercial money, fiduciary money, fiat money, commodity money. Money whose value comes from a commodity of which it is made is known as commodity money.