Representative money

Representative money is any medium of exchange, often printed on paper, 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.

Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.

It was introduced as an alternative to commodity money and representative money.

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 representative money could not have its face value thus divided.

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 certificates are a type of representative money issued between 1878 and 1964 in the United States as part of its circulation of paper currency.

This is in contrast to representative money, which has little or no intrinsic value but represents something of value, and fiat money, which has value only because it has been established as money by government regulation.

The system of commodity money eventually evolved into a system of representative money.

As such, commodity money gave way to representative money and gold and other specie were retained as its backing.

Representative money is any medium of exchange, often printed on paper, that represents something of value, but has little or no value of its own (intrinsic value).

Representative money is any medium of exchange, often printed on paper, that represents something of value, but has little or no value of its own (intrinsic value).

Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.

Unlike some forms of fiat money (which may have no commodity backing), genuine representative money must have something of intrinsic value supporting the face value.

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

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 representative money could not have its face value thus divided.

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

It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or only have nominal value (fiat money).

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.

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

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 (sign: VEN) is a representative digital currency.

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.