Types and forms of money. - SS1 Commerce Past Questions and Answers - page 1

Commodity money

Money representing a claim on a commodity

Government declaration as legal tender

Fiat money

Decentralized digital currency using cryptography

Representative money represents a claim on a commodity, while fiat money derives its value from government declaration as legal tender.

Physical cash refers to tangible forms of money, such as coins and banknotes, while digital currency exists only in electronic form and includes various electronic payment methods.