Structure and elements of the monetary system

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The base of the monetary system refers to two strong related notions: the monetary standard and the monetary unit. The monetary standard is the material representation of money or the value beyond the money and is used in defining the monetary unit. A commodity money system is a monetary system in which a commodity such as gold or silver is made the unit of value and physically used as money. The money retains its value because of its physical properties. In some cases, a government may stamp a metal coin with a face, value or mark that indicates its weight or asserts its purity, but the value remains the same even if the coin is melted down.