USA HISTORY

Detailed explanation-1: -Although the actual states were constitutionally forbidden to issue their own money, hundreds of private firms circumvented the law by producing what became generally known as “broken-bank notes.” Counterfeiting abounded.

Detailed explanation-2: -Money refers to a common medium of exchange that is issued under the law of government and acts as a legal tender for the whole country. The primary function of money is that money serves as a common medium of exchange where money is considered as a mode of exchanging goods.

Detailed explanation-3: -Primary functions of money are medium of exchange and measure of value. Secondary functions of money are standard of deferred payment, store of value and transfer of value. These functions solve the problem of double coincidence of wants.

Detailed explanation-4: -Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another. Economists differentiate among three different types of money: commodity money, fiat money, and bank money. Commodity money is a good whose value serves as the value of money.