economics modern forms of money

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Economics project By : Nicky Jha

Transcript of economics modern forms of money

Page 1: economics modern forms of money

Economics project

By : Nicky Jha

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MODERN FORMS OF MONEY

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INTRODUCTIONIn recent years we have

seen a dramatic transformation in the way in which people in this country use money. The textbooks tell us that money is 'anything that is generally acceptable as a means of exchange'. For hundreds of years people thought of money as coins, and then notes and coins with the development of bank notes. During the twentieth century cheques became widely used as a means of payment and later plastic money in the form of credit and debit cards.

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MODERN FORMS OF MONEY AT A GLANCE

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CREDIT CARDA credit card is a card which allows

people to buy items without cash. When they buy something, a sales clerk uses it to charge the money needed to their bank account, so the person will pay later. They are buying it on credit, which is the trust that they will pay it back later.

If a person does not pay within a limit (usually a month) they will have to pay extra money, called interest.

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Uses and advantages

• A credit card is used widely now a days instead of cash and it saves time and trouble of users , since they don’t have look up for an ATM to use it.

• Credit cards provides instant cash and Cash advances are quick and convenient, putting cash in your hand when you need it.

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DEBIT CARDA debit card (also known as a bank

card or check card) is a plastic payment card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Some cards may bear a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payer's designated bank account. The card, where accepted, can be used instead of cash when making purchases.

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Uses & Advantages of debit cards

• Debit cards let you buy things without carrying cash. You can use your debit card in most stores to pay for something. You just swipe the card and enter your PIN number on a key pad.

• Debit cards take money out of your checking account immediately.

• Debit cards let you get cash quickly. You can use your debit card at an automated teller machine, or ATM, to get money from your checking account. You also can get cash back when you use a debit card to buy something at a store.

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CHEQUEA cheque is a document that orders a

bank to pay money from an account. The person writing the cheque, the drawer, has a transaction banking account where their money is held. The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee , to pay that person or company the amount of money stated.

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• Cheques are widely used from past hundred years.

• Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money.

• Cheques are also a convenient way of payment , since whenever a user wishes to make a payment he can write a check .

However , now a days as credit cards and debit cards are mostly preferred and so there is a declining use of a cheque .

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A cheque from 1809 A cheque from 1905

A cheque from 1933 A cheque from 2006

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DEMAND DRAFT

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DEMAND DRAFT

• A demand draft, also known as a remotely created check, a tele-check, or check by phone, check by fax or e-check, is a cheque created by a merchant with a buyer's checking account number on it, but without the buyer's original signature.

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Uses

• Demand drafts are frequently used to purchase items over the phone, from telemarketers. The checks also allow consumers to pay monthly bills by having them debited automatically out of their accounts, rather than having to write a new check each month.

• Demand drafts are frequently used by consumers instead of credit cards, and large companies also commonly use them.

• Demand drafts are also a popular method for lending institutions to attempt to collect on overdue loans.

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WIRE TRANSFER

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ONLINE BANKING

Online banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred as Internet banking, e-banking, virtual banking and by other terms.

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ONLINE TRANSFER

• Online money transfer through online banking is now a convenient , affordable and faster way of transferring money.

• Different banks across India offer online transfer services.

• Now a user can send money within seconds through this online money transfer.

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Other systems of banking• Now a days along with the online

banking other banking options which are more convenient, easier and faster are available to the users.

• These include SMS banking, telephone banking and mobile banking.

• Users get a new experience of banking which is very easier than ever before.

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conclusion

• Today most of the people use credit cards , debit cards , cheques, etc.

• The use of online banking services have also become common.

• Today cash machines, or ATMs, are the most popular method of withdrawing cash for most personal customers.

• Therefore over time money has been available to us in different forms and each form is convenient than other.

• And with time we will find more new forms of money which will open up new possibilities of experiences dealing with money.

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