Question

Write a note on metallic money.

Answer 1

• After the barter system and commodity money system, modem money systems evolved.
• Among these, the metallic standard is the premier one.
• Under metallic standard, some kind of metal either gold or silver is used to determine the standard value of the money and currency.
• Standard coins made out of the metal are the principal coins used under the metallic standard. Monetary Economics 93
• These standard coins are full bodied or Ml weighted legal tender.
• Their face value is equal to their intrinsic metal value.