Write short notes on the following:
Credit money
Credit Money. Credit money refers to money whose value as money (i.e. face value) is greater than intrinsic value (i.e. the commodity value of the material from which the money is made). For example, face value of a hundred rupee note is र 100 but its intrinsic value is value of paper of which it is made. Similarly token coins, currency-notes, cheques, etc. are other examples. Since it is made of cheap metal or paper, its official purchasing power is higher than the value of metal or paper content. In day-to-day language, bank money is called credit money which refers to bank deposits of the people and which are payable on demand through cheque, bank drafts, etc. A cheque is a written order to a bank to pay the stated sum from the drawer's account. Credit money is classified as fiat money and fiduciary money.
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