Medium of exchange: Difference between revisions
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'''Medium of exchange''' is one of the functions of [[money]]. When people talk about [[cashflow]] they are usually talking specifically about the utility of this function, which is to have to carry only one kind of thing around to get all other things. If you "put it in a bank" you accept some [[standard of deferred payment]] - you have to retrieve the money before you can use it for exchange, or use some | '''Medium of exchange''' is one of the functions of [[money]]. When people talk about [[cashflow]] they are usually talking specifically about the utility of this function, which is to have to carry only one kind of thing around to get all other things. If you "put it in a bank" you accept some [[standard of deferred payment]] - you have to retrieve the money before you can use it for exchange, or use some trust based instrument like a '''cheque''' to do so or use the recently introduced real time verified and debited electorinic payment services like Visa Electron (physical), Debit MasterCard (physical) or Verified by Visa (network based). | ||
See [[w:medium of exchange]] for a detailed discussion of theory. | See [[w:medium of exchange]] for a detailed discussion of theory. | ||
Revision as of 13:10, 26 November 2003
Medium of exchange is one of the functions of money. When people talk about cashflow they are usually talking specifically about the utility of this function, which is to have to carry only one kind of thing around to get all other things. If you "put it in a bank" you accept some standard of deferred payment - you have to retrieve the money before you can use it for exchange, or use some trust based instrument like a cheque to do so or use the recently introduced real time verified and debited electorinic payment services like Visa Electron (physical), Debit MasterCard (physical) or Verified by Visa (network based).
See w:medium of exchange for a detailed discussion of theory.