Types of Money Used Today
Whatever is used as money today must be what is known as “legal tender”. Legal tender means that the government approves it as the form safely accepted for the payment of goods and services. The person receiving the money can be confident that the government will stand behind the currency because it has approved it as legal.
The types of money used today include:
- Coins
- Paper currency
- Bank drafts
- Money orders
- Stocks
- Bonds
- Treasury bills
- Credit cards
- ATM cards
- Options
- Gift certificates
- Cheques
- Travellers cheques
- Many more
Money is Converted Into 2 categories
As already explained, money is a token widely accepted as a medium of exchange. This medium of exchange can be tangible, such as a coin or note, or it can be intangible such as a direct credit into a bank account. If the medium or token can be converted into something tangible, such as a bar of gold or a bag of rice, then the token is known as “commodity money”,
Money not...
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