Money. ... In conclusion, money is an object generally accepted by society to measure value, exchange, and make payments on the purchase of goods and services, while simultaneously acting as a stockpile of wealth.Money has a very important role in economic activity. The existence of a money can make economic activities become more smoothly. With the money it can be used to facilitate the public in buying a good or service that is needed. Money is also used to store wealth and can be used to pay debts. What is money then? By understanding the description it can be concluded that money is an object that is generally accepted by the public is used to measure value, exchange and as a means of payment for goods or services purchased as well as a means of accumulation of wealth.
Understanding Money Functions and Types of Money
For more details please note the following explanation which explains the definition of money function and also the type of money.
Types of Money
Types of Money Based on Materials Used To Make Money
Coins, is money made by using metal, usually coins have a small nominal for example coins are money Rp 25, Rp 50, Rp 100, Rp 500 and Rp 1000. Making coins can be made from nickel, copper, , even gold with a shape, a degree of weight, certain characteristics in order to avoid the practice of counterfeiting. These forms and characteristics are announced by the government in order to be known to the public at large.
Paper money, is money made with paper, usually big nominal banknotes such as money Rp 1000, Rp 2000, Rp 5000, Rp 10,000, Rp 20,000, Rp 50,000, and Rp 100,000. Paper used to make paper money made from special-purpose paper that is not easy to forge.Types of Money Based on the Implementing Institution
Money Kartal (trust) is money which according to the law issued by the state is valid as a means of payment legitimate. In our country currency can be in the form of coins and paper money.
Giral Money (Bank Deposit) is an intangible money stored in a bank account in the form of a balance. The money can be used at any time for payment through intermediaries checks, demand deposits, and bilyet, pay orders.Types of money by value
Full value money is money that intrinsic value or value of money material equal to the value in the nominal money. Generally, the full value of money is made of metal.
Money is not full value is money that intrinsic value or material value is lower than the value in the nominal money. The form of money is not full value is generally made from paper.
The following are the Terms in money
Check yiatu warrant from the person who has a checking account in a bank, so the bank pays some money to the person whose name is listed in the check.
Demand is a warrant from a person who has a checking account in a bank, in order for the bank to make a payment by transferring a part or all of its giro account value to another person's current account.
The pay order is the order of the person who has a bank account, to the bank directly to pay to someone in cash.
Hopefully the information we provide about Understanding Money Functions and Types of Money can benefit you.