Money may be categorised according to the connection between its worth as money and its value as a commodity.
It is classified into three types:
Full Bodied Money: Full bodied money is any unit of money whose face value and inherent worth are identical, i.e. Money Value = Commodity Value. For example, one rupee currency was made of silver during the British period, and it’s worth as money was the same as its value as a commodity.
Representative Full-bodied money: It is a money that is often composed of paper. Representative full-bodied money has a considerably higher worth than commodity money. It is acknowledged as money since it is convenient to use for transactions.
Credit Money: Credit money refers to money whose inherent value (as a commodity) is substantially lower than its face value. Money Worth > Commodity Value.For example, the face value of a Rs 100 note is Rs 100, but if we sold it as a piece of paper, we would obtain a significantly lower price. Credit money also includes credit cards and bank deposits.
Final answer:
Hence, the various classifications of Money are full-bodied money, representative full-bodied money, and credit money.