ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commodity
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Commerical Bank
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Fiduciary
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Fiat
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Federal
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Detailed explanation-1: -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.
Detailed explanation-2: -Fiat money is backed by a country’s government instead of a physical commodity or financial instrument. This means most coin and paper currencies that are used throughout the world are fiat money. This includes the U.S. dollar, the British pound, the Indian rupee, and the euro.
Detailed explanation-3: -Fiat, commodity, representative, fiduciary, and commercial bank money are the five distinct forms of money in use today.
Detailed explanation-4: -Although money can take an extraordinary variety of forms, there are really only two types of money: money that has intrinsic value and money that does not have intrinsic value. Commodity money is money that has value apart from its use as money. Mackerel in federal prisons is an example of commodity money.
Detailed explanation-5: -Commodity Money. Fiat Money. Fiduciary Money. Commercial Bank Money.