Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

What comes under the classification of money?

Options:

Credit money

Representative full bodied money

Full bodied money

All of the above

Correct Answer:

All of the above

Explanation:

Money can be classified under 3 heads:

Full bodied money: Whose face value is equal to the intrinsic value. Example: gold coins

Representative full bodied money: Whose face value is greater than the intrinsic value. Example: paper money

Credit money: Whose value for monetary purpose is greater than its value for non-monetary purposes. For examples: token coins