Kinds of Money
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Money can be classified into the following types:
1. Commodity Money
This type of money has intrinsic value and can be used for trade.
Examples: Gold, silver, copper, salt, and wheat.
Learn more about Money Creation by Commercial Banks.
2. Fiat Money
It has no intrinsic value but is declared as legal tender by the government.
Examples: Paper currency (Taka, Dollar, Euro).
Check out Narrow vs Broad Money.
3. Fiduciary Money
Money that is accepted based on trust, such as checks and promissory notes.
Read more about Concept and Functions of Money.
4. Commercial Bank Money
It refers to money created by banks through deposits and loans.
Examples: Demand deposits, bank transfers.
Explore more on Central Bank vs Commercial Banks: Key Differences.
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Measures of Money Supply
Demand for Money
5. Digital Money
Electronic or virtual money used for online transactions.
Examples: Mobile banking, cryptocurrency.
Find out more about Kinds of Money.
Each type of money serves a unique role in economic transactions and financial systems.
Learn more about Scarcity in Economics: Meaning & Examples.
