Types Of Money:

The three main types of money are classified as:

a. Paper money and coins: These are money deposited with financial institutions, especially commercial banks and the Central Bank. The three types of deposit money are:

b. Bank deposits: These are money deposited with financial institutions, especially commercial banks which are withdrawable or transferable without prior notice by writing a cheque. Such deposits are held in current account of the customer, and a fee is charged for processing the cheque.