Introduction

When you hear money, you immediately think currency.

CURRENCY
Currency is a medium of exchange for goods and services. In short, it's money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment

Now when you think currency, it is said to be classified into three monetary categories:

• Fiat money
• Commodity money
• Representative money

1.

Fiat money- This is the one we are very familiar with. It is government issued and doesn't need any commodity to validate its value. This is what gives the central Bank power and they can print whatever amount they so desire. Which in turn, controls the economy.

If today the government decides that 1000NGN is useless then it becomes useless. It is solely dependent on government.

Some examples are: Nigerian Naira(NGN), US dollars, Euros, Indian Rupees.

Commodity money - Is dependent on commodities for their values.

2.

Some examples are: Gold, Silver, Cooper, Tobacco, Tea.

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Representative money - Are government backed representation of money. Financial instruments such as Credit cards, cheques.

3.

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DIFFERENCES IN FIAT, COMMODITY, REPRESENTATIVE

Fiat	Commodity	Representative
It's an alternative to commodity money	Its underlying value makes it unique	Include tokens, certificate representing money/commodities.
It's value is solely dependent on the government	It has an intrinsic value	Has no intrinsic value of its own rather it represents value.
A recognized legal tender	It is durable, exchangeable and rare	The government cannot print as much money as they desire
It thrives because of the people's trust in it	It instills trust. It can be touched, felt as physical as they come	It is not liable to depreciation by inflation. This is generally because it is tied to physical object

<sub>- Intrinsic means value outside of it's use.
- legal tender is anything recognized by court of law as satisfactory monetary payment that extinguishes debt</sub>

Conclusion

The above mentioned are all currencies for exchange. In buying and selling, some their values precedes them.

Spending,Saving ,Sharing. A well known fact "Money rules monopoly" . Self-absorbing reality. I hope I somehow passed a new knowledge to what you already knew before.

THANK YOU!

Cc @whitestallion
@campusconnectng