Category: Banking & Finance

Bank Money

Baked by Fiat money Easy to transfer Exact amount can be transferred Legally recognized for high value payment Bank Money Negotiable Instruments Act, 1881 Bill of Exchange 3 parties: future dated promise for payment Requires ‘ stamping’ Cheque 3 parties: drawer, Drawee (Bank), Payee (recipient) .No ‘stamping’, but sign req, may be crossed Types depends

Evolution of Money

At the beginning, there was no money. People engaged in barter, the exchange of merchandise for merchandise, without value equivalence. Evolution Barter System Positives Simplest in form No foreign Exchange regime No concentration of wealth Negatives Double coincidence of wants was must No division of labor Exchange of perishable goods No saving capital No circular
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