Q.State the types of money.

Money is of several kinds: metallic (coins), paper (notes), credit/bank money (cheques, deposits), plus legal-tender vs optional money.

Money can be classified into the following main types:

• Metallic money (coins): Made of metals such as gold, silver, nickel or copper; includes standard coins and token coins.
• Paper money (currency notes): Notes issued by the central bank/government, representing value; today most currency is of this kind.
• Credit money / bank money: Instruments created by banks such as cheques, demand drafts, bills of exchange and bank deposits used to make payments. …