What are the different types of money?

There are several different types of money that exist in the modern financial system. First, there is physical cash, which includes coins and banknotes issued by the central bank. This form of money is tangible and widely accepted as a medium of exchange. Another type is demand deposits, which are essentially digital representations of money held in checking accounts at commercial banks. These deposits can be easily accessed through various electronic channels like debit cards or online banking. In addition, there are various types of electronic money, such as cryptocurrencies like Bitcoin, which are decentralized digital currencies operating on blockchain technology. Lastly, there are also forms of money created by the government, such as central bank reserves, typically held by commercial banks. Each type of money serves specific purposes and is used in different contexts within the financial system.

This mind map was published on 5 December 2023 and has been viewed 44 times.