ECONOMICS (CBSE/UGC NET)

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: -Commercial bank money consists mainly of deposit balances that can be transferred either by means of paper orders (e.g., checks) or electronically (e.g., debit cards, wire transfers, and Internet payments). Some electronic-payment systems are equipped to handle transactions in a number of currencies.

Detailed explanation-3: -The term commercial bank money describes the portion of a currency which is made of book money – debt generated by commercial banks. It is the opposite of the terms central bank money, base money and sovereign money, which denote legal tender issued by a central bank or monetary authority.

Detailed explanation-4: -Commodity Money. Fiat Money. Fiduciary Money. Commercial Bank Money.