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Question
Distinguish between standard money and bank money.
Solution
| Standard money | Bank money |
| Standard money is defined as a monetary unit (e.g., Rupee is case of India) declared by a government which serves as the basis of currency system of a country. | Bank money, on the other hand, refers to demand deposits with commercial banks which are payable on demand. |
| Standard money is legal tender money. | Bank money is non-legal tender money. |
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