Types of Money and Nature of Money (Full Discussion)
Types of Money and Nature of Money (Full Discussion) - Previously discussed about meaning of money and its functions. Next, we will discuss what types of money are, how they are and what are their characteristics. The following will be explained briefly and in more depth.
Types of Money and Nature of Money (Full Discussion)
Let's discuss the types of money first carefully.
Type of Money
In the economy, the types of money can be divided into two, namely:
Card Money
Namely the types of paper and metal money created and issued by the Central Bank. Especially in our country, Indonesia, which has the right to create this type of money is Bank Indonesia. Currency is a legal means of payment and must be used by people who want to carry out daily economic transaction activities.
Giral Money
Namely money created by commercial banks or commercial banks, such as checking accounts, treeveler's checks, deposit accounts, where this demand deposit is at any time it can be used for payment because this type of money is a deposit or a deposit that can be withdrawn whenever appropriate his needs. The public can refuse if transactions are paid for with this, because not all payments use check, so economically this is legal but legally not, meaning it only applies to circles certain. To withdraw demand deposits, you can use demand deposits or checks.
Based on the material of manufacture divided into two, namely:
Coin
Usually made of gold or silver, because both meet the requirements of proper and efficient money. Gold and silver prices tend to be high, making gold and silver easily recognized and accepted by the public.
Paper Money
Namely those made of paper with certain images and stamps as well as legal tender. Meanwhile, according to the explanation of Law no. 23 of 1999 concerning "Bank Indonesia", what is meant by banknotes is money in sheet form.
Based on value that is:
Full money (Full bodied Money)
If money is made of gold, then the value of the money is equal to the value of the gold it contains. That is, the value of money can be said to be full money if the value is stated above the money the same value as the material used, or in other words the nominal value is the same as the value intrinsic.
For example: is gold and silver money.
Token Money (Token Money)
That is, if the value listed above Money is higher than the value of the materials used to make money or the face value is greater than the intrinsic value of the money. For example, to make Rp. 5,000.00, - the government spent Rp. 3450.00,-.
Nature of Money
The properties of money itself are:
- Portability, namely money is easy to carry
- Durability, money is not easily damaged and has a long durability
- Acceptability, money is liked and accepted by everyone
- Standardability, money has a color shape and has a standard size
- Stability, has stability or does not experience changes so that money is easily recognized
- Scarcity, has an amount that is not excessive and limited but can meet the needs
Thus the discussion about Types of Money and Nature of Money (Full Discussion), hopefully useful and also visit related articles about the meaning of money and its functions. Thank You.
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