Paper money metallic money definition it refers to that money which is in the form of paper currency notes issued by the government of the country. Eventually, people started using metals as money. (ii) cost of printing notes is less.
The Counting Of Large Amounts In Metal Form Is Inconvenient And Difficult.
Cost cost of printing notes is less. It refers to that money which is in form of paper currency notes issued by government. This is something that would not be easily possible in a metallic based system.
Paper Money Has Less Durability Than Metallic Coins.
It is metallic money made up of pure and superior metals like gold and silver. On the other hand counting of paper money is easy, convenient and requires little time. In order to flood the financial system with more gold or more silver, more gold or silver would be required.
They Are Not Economical To Produce.
Fiat money allows for greater trade latitude (import/export), whereas gold and silver based currency relies not on government. Unlike paper money, metallic money cannot be created out of thin air. Paper money vs precious metal money.
Thus, Paper Notes Will Drive Out Standard Coins From Circulation.
In about 100 b.c., the chinese made money of animal skin. It was developed as a substitute of metallic currency Sales of american silver eagle bullion coins set a new high water.