Since the emergence the money constantly changes and develop. It is important to note that during various periods at certain parameters and in different spheres of money turnover different types of modern money are applied. Presently there are different types of money.
Types of money and their feature
The most widespread money are paper. Practically in all corners of the world use them in everyday life. Only the state has rights for their release. The main functions of paper money is that they are means of payment and also represent currency. Paper money represents signs of cost, and their essence is in covering the deficit in the budget of the country.
The banknote – the paper money released only by the central bank of a certain country.
At a conversation about what types of money exist, it is necessary to mention credit money. Their emergence is caused with progress and development of the various industries of production when process of purchase and sale happens to payment payment by installments, crediting. In this case, credit money is the obligation to repay the debt the valid money during a certain period of time. The following type of money – bills. They represent unconditional obligation of the debtor in writing. The bill guarantees payment of a certain sum on time and transferred in the established place. There are two types of bills – idle time which is given directly by the debtor and translated (also it is called bill of exchange), which is given to the debtor by the creditor.
Checks represent monetary documents which contain the following information. The owner of the account in credit institution undertakes to pay to the holder to the check that sum which is specified on it.
It is necessary to mark out category of electronic money separately. Taking into account development of technical progress, increasing number of people use such money.
Electronic money is stored in electronic devices on the customer account, at his desire they can be brought by means of special services in real money.
Also now checks are more often replaced with credit cards. They are equipped with the built-in microsystem and, as a rule, are issued on the basis of the account of the holder of this card.