| Two types of money exist:
* Commodity (of full value);
* Representative money.
Commodity money: Money, the principal value of which corresponds to the cost of metal, from which the money is made.
Representative Money (the substitute of commodity money): Money, where the principal value of which is more than the commodity money. Metallic token coins and paper tokens belong to representative money.
Paper and credit money also exist:
Paper money: the standard of deferred payments and circulating medium.
Credit money: Credit money, basically, is a standard of deferred payments. Credit money appears when a sale-purchase is accomplished in installments i.e. in credit.
Credit money had undergone the following development:
* Bill – A letter of debt liability, granting the right to the bearer to demand the payment of money upon the term of expiry of the bill from the debtor;
* Banknote – Perpetual debenture, issued by the issuing bank of the country; Banknotes are the national money in all the territories of the state;
* Cheque - a monetary document of established shape, containing an unconditional order of the owner of the account in a credit institution about a payment of a specified sum to its bearer;
* Electronic money appeared as a result of scientific and technical progress and development in computer technology;
* Credit cards – a personalized monetary document, issued by the credit institution, which certifies the availability of a client’s account in this establishment and grants the right to procure goods and services in the retail trading network without cash payment.
Currency circulation:
Replacing the form of value (goods for money, money for goods), money is in constant circulation between three subjects: individuals, business entities and public authorities. The circulation of money when the three subjects perform their functions in cash and non-cash forms represents currency circulation.
Currency circulation is done in two forms: cash and cashless.
Cash currency circulation: The circulation of cash money in the sphere of circulation and performing two functions (standard of deferred payments and circulation medium). Cash is used:
* For the circulation of goods and services;
* For calculations, which are not connected directly with the circulation of goods and services;
The cash currency circulation includes the circulation of all the cash currency mass for a certain period of time between the population and legal bodies, between individuals, between legal bodies, between the population and federal bodies and between legal bodies and federal bodies. The cash currency circulation is done by means of various types of money: banknotes, metal coins, other credit tools (bills, bank drafts, cheques, credit cards).
Cashless circulation: The circulation of value without participation of cash: the transfer of money resources as per accounts of credit institutions, offset in mutual requirements.
Non-cash circulation is done by means of cheques, bills, credit cards and other credit tools.
Cashless currency circulation covers calculations between:
* Enterprises, establishments and organizations of different ownership patterns, having accounts in credit institutions;
* Legal bodies and credit institutions on reception and return of credit;
* Legal bodies and the population for payment of wages and payoffs;
* Physical and legal bodies with the state treasury for payment of taxes, dues and other obligatory payments and also receiving budgetary funds.
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American and international markets are free-falling today. To cheer things up, we are going to have some fun with currency today. Let's have another twist to our contest
