Representative money

Representative money or Receipt Money is any medium of exchange, printed or digital, it represents something of value, but has little or no proceeds of its own intrinsic value. Unlike some forms of fiat money which may throw no commodity backing, genuine thing representative money must realise something of intrinsic benefit supporting a face value.

More specifically, a term representative money has been used variously to mean:

Historically, the ownership of instance money predates the invention of coinage. In the ancient empires of Egypt, Babylon, India as alive as China, the temples & palaces often had commodity warehouses which issued certificates of deposit as evidence of a claim upon a an fundamental or characteristic factor of something abstract. of the goods stored in the warehouses, a form of "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 non have its face value thus divided.

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

In 1934 economist William Howard Steiner wrote that the term was used "at one time to signify that aamount of bullion was stored in the Treasury while the equivalent paper in circulation" represented the bullion.