Representative money

representativenegotiatedcommodity backedsoft moneytoken
Representative money is any medium of exchange that represents something of value, but has little or no value of its own (intrinsic value).wikipedia
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Medium of exchange

mediums of exchangeexchange mediumfreely exchangeable for goods
Representative money is any medium of exchange that represents something of value, but has little or no value of its own (intrinsic value).
Most forms of money can act as mediums of exchange including commodity money, representative money and most commonly fiat money.

Fiat money

fiat currencyfiatfiat currencies
However, unlike some forms of fiat money (which may not have anything of value backing it), to be a genuine representative money, there must always be something valuable supporting the face value represented. Any type of money that has face value greater than its value as material substance. Used in this sense, most types of fiat money are a type of representative money.
It was introduced as an alternative to commodity money and representative money.

Banknote

paper moneybanknotespaper currency
According to economist William Stanley Jevons (1875), representative money in the form of bank notes arose because metal coins often were "variously clipped or depreciated" during use, but using representations for the value stored in banks ensured its worth.
Banknotes were seen by some as an I.O.U. or promissory note: a promise to pay someone in precious metal on presentation (see representative money), but were readily accepted - for convenience and security - in the City of London for example from the late 1600s onwards.

Silver certificate (United States)

silver certificatessilver certificatesilver notes
A claim on a commodity, for example gold certificates or silver certificates. In this sense it may be called "commodity-backed money".
Silver certificates are a type of representative money issued between 1878 and 1964 in the United States as part of its circulation of paper currency.

Money

monetaryspeciecash
Any type of money that has face value greater than its value as material substance. Used in this sense, most types of fiat money are a type of representative money.
The system of commodity money eventually evolved into a system of representative money.

Commodity money

speciecommoditycommodity standard
Commodity money
Commodity money is to be distinguished from representative money which is a certificate or token which can be exchanged for the underlying commodity, but only as the trade is good for that source and the product.

Gold standard

goldgold exchange standardbacked by gold
Gold standard
As such, commodity money gave way to representative money and gold and other specie were retained as its backing.

Hard currency

sound moneyhard currencieshard money
Hard currency
Representative money

Silver standard

silversilver currencyprice of silver
Silver standard
Representative money

Value (economics)

valueeconomic valuemonetary value
Representative money is any medium of exchange that represents something of value, but has little or no value of its own (intrinsic value).

Intrinsic value (numismatics)

intrinsic valuemelt valueintrinsic
Representative money is any medium of exchange that represents something of value, but has little or no value of its own (intrinsic value).

Face value

face amountvalue of legal tender
However, unlike some forms of fiat money (which may not have anything of value backing it), to be a genuine representative money, there must always be something valuable supporting the face value represented.

Coin

coinsspecieexergue
Historically, the use of representative money predates the invention of coinage.

William Stanley Jevons

JevonsStanley JevonsJevons, William Stanley
According to economist William Stanley Jevons (1875), representative money in the form of bank notes arose because metal coins often were "variously clipped or depreciated" during use, but using representations for the value stored in banks ensured its worth.

Joseph Shield Nicholson

J. S. Nicholson
In 1895 economist Joseph Shield Nicholson wrote that credit expansion and contraction was in fact the expansion and contractions of representative money.

Gold certificate

gold certificatesgold bonds
A claim on a commodity, for example gold certificates or silver certificates. In this sense it may be called "commodity-backed money".

Monetary system

monetary standardcurrency systemsbacked
A claim on a commodity, for example gold certificates or silver certificates. In this sense it may be called "commodity-backed money".

Store of value

stores of valuea firm foundationput
Store of value

History of money

monetary historyabandonmentan international currency of the early ages
It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or only have nominal value (fiat money).

Treasury Note (1890–91)

Treasury Notetreasury notesTreasury or "Coin" Note
The Treasury Note (also known as a Coin Note) was a type of representative money issued by the United States government from 1890 until 1893 under authority of the Sherman Silver Purchase Act in denominations of $1, $2, $5, $10, $20, $50, $100 and $1000.

Bretton Woods system

Bretton WoodsBretton Woods AgreementBretton Woods institutions
The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states.

Digital gold currency

digital gold currenciesbelowdigital
It is a kind of representative money, like a US paper gold certificate at the time (from 1873 to 1933) that these were exchangeable for gold on demand.

Ven (currency)

Ven
Ven (sign: VEN) is a representative digital currency traded in international financial markets.

Treasury Note (19th century)

Treasury Notes7.30 bondsearly civil war treasury notes
While the Treasury Notes, as issued, were neither legal tender nor representative money, some issues were used as money in lieu of an official federal paper money.

History of the taka

TakaBengali takacurrency
It was modeled as representative money, a concept pioneered as paper money by the Mongols in China and Persia.