Money can be classified as:
(i) Full-bodied money It is the money whose value as commodity is equal to its value as money, e.g. gold, silver.
(ii) Representative full-bodied money It is usually made of paper. It is that money which is fully backed up by gold and silver.
(iii) Credit money It is that money whose value as money is more than the commodity value of the material which is used to make the money. It can be in the form of:
(a) Token coins
(b) Representative token money
(c) Circulating promissory notes issued by the Central Bank
(d) Bank money