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WEEK 5
TOPIC: MONEY AND DISTRIBUTIVE TRADE-
Content
- Types of Money
- Characteristics of Money
- Meaning of Distributive Trade
- Roles of Wholesalers and Retailers
Sub-Topic One: Types of Money
- Coins: A coin is metal money with definite amount and weight issued and stamped by the central authority responsible for the issuance. The coins in use are kobo and naira, which are in different denominations.
- Paper Money: As the name indicates, it is in form of paper note which originated from receipts the goldsmiths issued to people who kept gold and other valuables with them.
- Bank money: This is the money one keeps in one’s bank account for safe-keeping, also called bank deposit which can be given back to the owner on demand.
- Foreign money: It is the money of other countries of the world which serves as money in the foreign exchange market. Some of the most popular foreign exchange are : Dollar, Pounds sterling, Deutschmark, etc., and they enable a citizen of a country to buy items from other countries where he is resident at the time.
- Token Money: This is money whose intrinsic worth is less than its nominal or face value. That is, its value as a piece of metal or note is not identical with its value as piece of money. Britain’s silver coins were replaced with coins of curpo-nickel because their value rose above their face value or purchasing power value as a result of high rise in the value of silver during the two world wars. As a result of the rise in value of silver, there was danger that the silver coins might be illegally melted.
- Commodity Money: Different commodities were used in different parts of the world as medium of exchange and they are presently called commodity money. These have two values as money and as commodities. These commodities include: cowries, gold, diamond, silver, shark teeth, cows, manilas etc., and presently some of them have gone into oblivion as media of exchange.
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