Advertisements
Advertisements
Question
Convertible paper money and Inconvertible paper money.
Solution
| Points | Convertible Paper Money | Inconvertible Paper Money |
| 1. Meaning | It is that money which can be converted into standard money on demand. | It is also known a fiat money, this money is sanctioned on the command of Government. |
| 2. Backed by Reserves | This money is normally backed by gold or silver reserves. Therefore, it can be converted into gold or silver. | This money is not backed by gold or silver reserves. Therefore, it cannot be converted into gold or silver. |
| 3. Current Usage | Nowadays, convertible paper money is not in use. | Nowadays, inconvertible paper money is in use in almost all countries. |
APPEARS IN
RELATED QUESTIONS
Cheque is an optional money.
Convertible paper money and Inconvertible paper money.
Distinguish between Legal tender money and Non-legal tender money.
Distinguish between the following :
Paper money and Metallic coins.
Distinguish between the following.
Metallic Money Paper Money.
(b) current account
(c) recurring account
(d) fixed deposit account
Distinguish between :
Current deposits and Fixed deposits.
Distinguish between Any FOUR of the following :
Metallic money and Paper money.
Answer in brief.
Explain the definitions of Money.
Write Short Note.
Commodity money
Answer the following question
What are the different types of money?
Distinguish between -
Commodity money and metallic money
Distinguish between
Paper money and metallic coins
Give reason or explain.
Any commodity cannot act as money.
