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FIAT MONEY: A medium of exchange (money) with value in exchange, but little or no value in use. Modern paper currency, coins, and checkable deposits are fiat money. The value of fiat money comes from the public's general willingness to accept it in exchange for other goods. This willingness comes from the fact that EVERYONE is willing to accept fiat money in exchange, which largely depends on the public's confidence in the authority (usually government) issuing the fiat money. Fiat money is NOT valuable unto itself, but it is valuable for what it can buy.
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Lesson 17: Money | Unit 4: Money's History
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Page: 21 of 25
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Topic:
Electronic Money
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Computers reduce the use of paper currency and checks.- Electronic money is another logical step in the historical progression of money.
- Modern checking accounts are little more than digital information.
- The trend is toward accessing information directly with computers, including ATM machines, point-of-purchase terminals in stores, and home computers.
Electronic money: - It fits two of the four characteristics of money: easy to transport and completely divisible.
- The other two characteristics raise questions:
- Counterfeitable: Electronic money could be the easiest or the hardest money to counterfeit.
- Durability: This depends on the stability of the government and the banking system.
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INDUCED SAVING Household saving that depends on income or production (especially disposable income, national income, or even gross domestic product). That is, changes in income induce changes in saving. Induced saving reflects the fundamental psychological law put forth by John Maynard Keynes. It is measured by the marginal propensity to save (MPS) and is reflected by the positive slope of saving line. The alternative to induced saving is autonomous saving, which does not depend on income.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either a New York Yankees baseball cap or a solid oak entertainment center. Be on the lookout for letters from the Internal Revenue Service.
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This isn't me! What am I?
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The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
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"Far and away the best prize that life has to offer is the chance to work hard at work worth doing." -- Theodore Roosevelt, 26th US president
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IBT
Indirect Business Taxes
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