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...Upsc notes monetary system types of money full bodied anything which has general acceptance as means payment it is the type whose functions value equivalent to o medium exchange its commodity common measure e g gold coin standard for deferred payments store wealth token credit paper barter a exchanged other commodities much more problems are than double coincidence what required currency valuation problem representative there won t be serve kind but future obligations issued against backing gresham s law bad drives out good bullion legal tender this cannot denied in and silver bulk with settlement obligation issuing authority limited compulsory accept upto certain limit sum can paid denominations paisa coins recipient legally unlimited used make any amount non no compulsion also called optional or fiduciary on basis trust nepalese at india nepal border may not bound fiat serves order government by theoretically near highly liquid financial assets like shares bonds supply total stock al...