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Other assets also serve this function money is the

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Unformatted text preview: also serve this function 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 your account 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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