What is money in economics?
The money, from the Latin denarius (name of the Roman coin in antiquity), is one medium of exchange that recognizes a particular society for payment of services and products. In the present age, there are3 types of money, Metalic money, Paper money, and Credit money. Further types are explained below:
List of All Types of money
You can talk about various types of money, including:
Sign money: this is represented by fractional coins and bills in which the value of the material with which it was made is much lower than its value as money. In other words, these coins and bills receive extremely high denominations compared to the paper or metal with which they are produced. In the case of sign money, the value is granted by the entity that supports and issues it.
Merchandise money: in this case, money can be used as merchandise for consumption or trade, or to use it as a medium of exchange. In one way or another, this medium of exchange has the same value.
Legal tender money: this is the money that a certain government recognizes as acceptable to pay off debts and also as a means of payment. Thanks to legal support, national money has the possibility of being accepted in most exchanges.
Bank money: in this case, the money is generated by bank deposits and is made up of: time deposits, savings deposits, and demand deposits.
I will pay money: this money is based, in most cases, on the debt of some credit institution. Demand bank deposits, which are transferred by check, belong to this class of money. When an individual signs a check, what it does is that the debt is transferred to the bank, who will give the money to the individual who received the check.
Electronic money: this is the money that is only exchanged electronically, for this the computer and the internet are usually used, so the user never comes into physical contact with it.
Credit money: this consists of a paper whose issuer can be a bank or government and is the one that guarantees it to pay in metal its equivalent value.