I'm trying to understand the different types of currency. Specifically, I want to know what the four main categories of currency are.
7 answers
Caterina
Tue Nov 19 2024
Money can be classified into four main categories.
MysticRainbow
Tue Nov 19 2024
The first type is fiat money. This form of money is backed by the government's order and regulation, rather than by any physical commodity.
Starlight
Mon Nov 18 2024
The type of money used in a society largely depends on its economic and political system. Different countries may adopt different types of money based on their specific needs and circumstances.
JejuJoyful
Mon Nov 18 2024
The second category is commodity money. It has intrinsic value and is often made from precious metals such as gold and silver.
Caterina
Mon Nov 18 2024
The third type is fiduciary money. It represents a claim on some underlying asset, such as gold or silver held by a bank, and functions as money based on the trustworthiness of the issuer.