Types of Money
Below are the forms or types of money;
(i) Coins: These are metals in form of silver and gold. It has a definite denomination issued and stamped by the central authority responsible for the issuance of money. For instance, the coins in use are kobo which are in different denominations.
(ii) Paper Note: It consists of banknotes with definite money value. This is in the form of paper notes originating from the receipts the goldsmiths issued to people.
(iii) Bank Deposit: This is demand deposit with the bank. They are withdrawn by means of cheques. It is the money one keeps in one’s bank account for safe-keeping, also called bank deposit, which can be given by the bank on the demand of the owner.
(iv) Legal Tender: These are all types of money that are generally accepted to be spent and it has legal backing e.g. Naira and kobo are legal tenders only in Nigeria. It is backed with the force of law which makes it generally acceptable.
(v) Commodity Money: It serves as both commodity and money and has dual values e.g. gold.
(vi) Currency: This is the type of money being issued in a country e.g. Nigerian currency is Naira and Kobo.
(vii) Fiduciary Issue: It is in form of a note issue which is not backed by gold.
(viii) Fiat Money: It is the money that is declared by the government order (or fiat), to be legal tender for the settlement of debts but it can’t be converted into anything else.