Modern form of money includes currency, paper notes and coins. credit or debit cards). Thus, the rupee in India is available in the form of paper notes which have no intrinsic worth. The rupee is, for instance, our money of account; sterling is the money of account of Great Britain and marks that of Germany. Currency money is a legal tender and has general acceptability, whereas bank deposits are conventional money and lack general acceptability.In fact, though the use of money has become all pervasive throughout the world, certain backward areas are still non-monetised.
Barter is, therefore, not completely obsolete. Some of the most important forms of money are as follows: 1. Today these demand deposits are the important constituent of the money supply in the country.
Usually it’s real or ‘intrinsic value’ is equal to its face value. It is unlimited legal tender and is subject to free coinage, i.e., anybody can bring his metal and get coins made of it.
Paper money can circulate within the domestic economy only. However, recently notes of Rs. The basic form of money is numbers; today, the basic form of currency is paper notes, coins, or plastic cards (e.g. The paisa in India has not in circulation and yet it is money of account. Money can be in various forms, such as notes, coins, credit and debit cards, and bank checks. In India, for instance, some Adivasi areas are still unfamiliar to the use of money.PreserveArticles.com is an online article publishing site that helps you to submit your knowledge so that it may be preserved for eternity. They are useful as a convenient means for the payment of small sums.Since all types of coins are issued by the state authorities either the Treasury or the Central Bank of the country they are regarded as legal tender.Legal tender money’s acceptability is sanctioned of backed up by law; hence”, a refusal to accept it is a punishable offence. Therefore, paper money is in wide circulation.In modern economic societies, with the development of banking activity, along with paper money, another form of convertible money has developed in the form of credit money or bank money.Bank demand deposits, withdrawal by issuing cheques, have started functioning as money, and cheques are now conventionally accepted as a mode of payment by the business community in general.It must be noted that a cheque by itself is just a credit instrument. For instance, the old rupee coins of one hundred and eighty grains 11/12 fine are no longer legal tender in India. Even the rupee coin has a metallic value much less than its face value. Obviously, paper is much cheaper than any metal.2.
It … Rupee and all other coins in India are all token money. Paper money is economical. Commodity money is the simplest and, most likely, the oldest type of money. It is very convenient to carry paper money from place to place.4. 3. Traditionally, economists considered four main functions of money, which are a medium of exchange, a measure of value, a standard of deferred payment, and a store of value. It is limited legal tender when payments only up to a given limit can be made by means of it. It is very convenient to carry paper money from place to place. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge.Before publishing your Article on this site, please read the following pages:PreserveArticles.com is a free service that lets you to preserve your original articles for eternity. Our mission is to liberate knowledge. Standard money is that in which the value of goods as well as all other forms of money are measured. And so is the half-rupee coin. The department of government minting coins is called the Mint.Coins are of two types: (i) Standard or full-bodied coins and (ii) Token Coins.A coin is regarded as a standard coin or full-bodied coin if its “face value” (i.e., the exchange value fixed by the issuing authority and embossed on it) is equal to its “intrinsic value”, i.e., the worth of the metallic content of the coin.In the past, coins made from precious metals like gold and silver were regarded as standard coins and the monetary systems adopting them were referred to as “gold and silver standards.”On the other hand, a token coin refers to a coin having the face value of more than its intrinsic value Token coins are usually made of cheap metals like nickel, copper or bronze.They are generally of lower denominations. Limited and Unlimited Legal Tender 3. Rupee coin has been called a ‘note printed on nickel’ (Rupee coin these days is made of nickel). It is important to note that bank deposits are generally divided in two categories: demand deposits and time deposits. Commodity Money. In old days the standard money was & full- bodied money, i.e., its face value was equal to the real or intrinsic worth of the metal it contained.