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Money is the most liquid of all assets but loses value during
ination Evolution of the Payments System Commodity Money: valuable, easily standardized and divisible
commodities (e.g. precious metals, cigarettes).
Fiat Money: paper money decreed by governments as legal
tender. Eco 029 What is Money? (Chapter 3) Central Banks and the Federa Evolution of the Payments System Checks: an instruction to your bank to transfer money from
Electronic Payment (e.g. online bill pay).
E-Money (electronic money): Debit card
Stored-value card (smart card)
E-cash Eco 029 What is Money? (Chapter 3) Central Banks and the Federa Are we headed for a cashless society? Predictions of a cashless society have been around for decades,
but they have not come to fruition
Although e-money might be more convenient and ecient
than a payments system based on paper, several factors work
against the disappearance of the paper system
Still, the use of e-money will likely still increase in the future How do we measure money? How do we measure mone...
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