Question

Which one of the following is a modern form of currency?
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Answer 1

In the modern monetary systems, there are three forms of money in actual use :- (i) Metallic Money,

(ii) Paper Money, (iii) and,Credit Money.

The first two kinds of money are in the form of currency money and the last one is credit or bank money.

(I) Metallic Money

Metallic Money refers to coins made out of various metals like gold, silver, bronze, nickel, etc.

(II) Paper Money

Paper Money consist of currency notes issued by the state treasury or the central bank of the country.

(III) Credit Money

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.