Explain five types of money.

COINS: Coins are precious metals made of silver, which have a defined amount of metallic content. They also have an official stamp of authority placed on them.
Coins are homogenous and indestructible.
COMMODITY MONEY: This is the type of money which has value has both money and commodity. Commodity money is valuable for its own sake since it can be put to some other uses.
They can be used has medium of exchange e.g gold, diamond, cattle and beads.
BANK NOTE: These are slips of paper or currency issued by the central bank. Paper money originated from the receipt issued by goldsmiths to those who deposited precious metals e.g gold, with them for safe keeping.
PARTIAL MONEY: These are representatives of money which may be legal tender. They are acceptable within a certain restricted area. Partial money is not made mandatory for acceptance by all the people.
LEGAL TENDER: A legal tender is any means of payment by which a trader is compelled by the law of the state to accept in settlement of debts, e.g Dutchmark. This is money which has the backing of the law and is an offence to reject it.
TOKEN MONEY: Is a form of money which represents a greater values than it intrinsic value.

Oluwamuyide Peter

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