monetary system

Monetary system The Monetary System is defined as a collection of policies, models, and institutions by which the government makes wealth in the economy. Such establishments include the candy, the central bank, finances and other business institutions. There are three general types of monetary schemes – commodity wealth, commodity-based currency and fiat currency. The commodity currency system is a monetary method in which a commodity , e.g., gold or silver is given that unit of value and physically used as currency. This wealth holds its value because of its physical attributes. In some instances, the government may stamp a metal coin with the look, measure or symbol that suggests its weight or asserts its innocence. While monetary policy typically focuses on the value signal of one form or another, the way is concentrated on monetary measures. As these measures would take a role on the economy and business cycles dependent on the families' risk aversion point,