explain more about the creation of money and the use of digital money in nowadays.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter14: Money And Banking
Section: Chapter Questions
Problem 17AA
icon
Related questions
Question
explain more about the creation of money and the use of digital money in nowadays.
Expert Solution
Step 1

*Creation of money

Money is used as a medium of exchange.

Initially there was barter system in which goods was exchanged for goods.

After sometime,metal coins such as gold,silver coins were introduced.

Those coins were used for buying and selling of goods.Coins were acting as money.Then paper notes wer introduced which had different denominations.Country with different currency started to use money for international trade.

Step 2

*Use of digital money

Digital money is the money which requires use of computers.

Example of digital money are cryptocurrency bitcoin.

Digital money requires computer technologies.During 1990's,use of digi cash started and also with the starting of pay pal.

Digital money is not real cash and is used for online tranasctions.It acts as cash and can be operated through online process.

 

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Virtual Market Place
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
ECON MACRO
ECON MACRO
Economics
ISBN:
9781337000529
Author:
William A. McEachern
Publisher:
Cengage Learning
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning