College of Business administration
(Money, banking, and credit)
CLASSIFICATION OF MONEY
Money according to material used
Commodity money. This can be metallic in nature. It is used for purposes other than as a medium of exchange if so desired like rice, salt, sugar and the like satisfying physiological needs. Precious metal like gold and silver are also used as commodity money. Paper money. High quality paper materials are used to stand a long period of time and to minimize counterfeiting. Bank money. These are checks or other paper notes issued by financial intermediaries.
Money according to the character of the issuer
Treasury money. Those issued by the national treasury by 1949. They are notes and coins of various denominations.
Central bank money. Those issued by the central bank after 1949. They are the central banks notes and coins circulating in the Philippines.
Commercial bank money. Those issued by the Philippine national bank and other commercial banks serving as promises to pay, legal tender, payable on demand or future time to bearer or order.
Money according to popularity
Paper money. Have no commodity value.
Fiat money. They are inconvertible paper money with no reserve. Face value is higher than the value of paper material used.
Subsidiary coins. Representative full bodied money made of base metals to settle small transactions. Not advisable for used in big transactions thereby having limited legal tender power.
Money according to face value
Standard money. This is full bodied money authorized by law where the weight fineness denominations designs are prescribed by the government as a standard basis for coinage.
Reported by; Mary Grace Remegio
Instructor; Mr. Bonymer Albor