Answer to Question #240396 in Economics for Abo

Question

Distinguish among the different types of money that can be used in the South African economy

Answer 1

There are three types of money:

commodity money (gold, silver, pearls, stone money, cattle, etc.);

value signs (coins and paper money);

credit money (credit cards, checks).

Historically, commodity money was the first to appear. The main difference between commodity money and value signs and credit money is that commodity money has its own value, while coins and paper money do not.

Depending on the form of money, one can distinguish:

cash;

non-cash money.