Money.co.uk

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41 page needed forty two Business bank money differs from commodity and fiat money in two methods: firstly it’s non-physical, as its existence is just reflected in the account ledgers of banks and different financial institutions, and secondly, there is some factor of threat that the claim is not going to be fulfilled if the monetary institution turns into insolvent.

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The system of commodity money finally developed right into a system of representative money quotation wanted This occurred because gold and silver retailers or banks would concern receipts to their depositors – redeemable for the commodity money deposited.