These cards mainly just kept customers loyal to the company. Commodity money is a good whose value serves as the value of money. Generic term for all types of bank cards, credit cards, debit cards, smart cards, etc. Debit card, credit card, plastic money, paper money, transactions, and financial institutions introduction plastic cards have been a very recent substitution of the normal method of paying through paper money.
Plastic money definition of plastic money by the free. Representative money has now been replaced by fiat money. An abstract on plastic money pdf download by sasidhar karetimarch 01, 20 0. Money definition is something generally accepted as a medium of exchange, a measure of value, or a means of payment. It was in the 1950s the concept of plastic money came into being. Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another. Plastic money its technical and monetary importance educba. The money portion is an erroneous reference to credit cards as a form of money, which they are not. Meaning and definition of plastic money free download as word doc. The financial action task force fatf is an independent intergovernmental body that develops and promotes policies to protect the global financial system against money laundering and terrorist financing.
Meaning definition functions of money, article posted by gaurav akrani on kalyan city life blog. The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions. Nov 07, 2019 money is an officiallyissued legal tender generally consisting of notes and coin, and is the circulating medium of exchange as defined by a government. Every country has its own exchange system of coins and paper money. Model definition is a usually miniature representation of something. It is meant to the used in place of coins and banknotes for the purpose of making electronic payments of small amount fsa, 2001. This is why credit cards are excluded from the definition of electronic money.
A study on the importance and popularity of plastic money. The loss which a country suffers from the wear and tear of metallic money is also avoided. How did all start, in history you might have learnt batter system where goods were traded for goods, then came an era where gold and silver coins came into being, then we modernized we stared using paper notes and coins for trading of goods and services. It has led to the creation of financial institutions.
Peter, a young mba graduate joins a large software firm as a business development executive. It all started with a simple credit card that allowed you to make purchases today and pay later. Currency notes, therefore, are the cheapest media of exchange. Meaning and definition of plastic money stored value card debit. Pdf customers perceptions about plastic money towards. Charge cards laid the groundwork for debit and credit cards. Definition of plastic money, definition at economic glossary. Now, people can remotely access their money through these plastics. Plastic money definition and meaning collins english dictionary. Money as a standard of deferred payments has simplified the borrowing and lending operations. They are the alternative to the cash or the standard money. Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes.
Money as a store of value means that money can be used to transfer purchasing power from present to future. Mobile money services design and development for financial. The usage of plastic money card has increased in the mode of payment of huge amount and hence broth there are lots of different types of plastic money that can be used anywhere in the world. Money is anything that is generally acceptable as a means of exchange, and in the settlement of debts. What are the advantages and disadvantages of money. Plastic money fraud has become a global business and he made an attempt to track down fradulent and crime activites involved in the usages of the debit and credit card, but it is found difficultbecause the development differs from country to country and moves on fast. The plastic portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. However, fiat money has an advantage over representative or commodity money, in that the same laws that created the money can also define rules for its replacement in case of damage or destruction.
Money one of the most important factor for living life. An empirical analysis on italian households article in economic notes 421 february 20 with 671 reads how we measure reads. Money is a current medium of exchange in the form of coins and banknotes. Alternatives for waste management guide g314 fahzy abdulrahman1 cooperative extension service college of agricultural, consumer and environmental sciences introduction this publication provides an overview of the reasons and ways to better manage garbage or other household waste.
With a history of plastic money, you cannot ignore charge cards. We defined money as anything that is generally accepted as a means of payment, is a store of value, can be used as a unit of account or a standard of deferred payment. Plastic money is the name given to all types of plastic bank cards 3. This part of the definition means that electronic money is a prepaid product. Plastic money or polymer money, made out of plastic, is a new and easier way of paying for goods and services. Plastic money was introduced in the 1950s and is now an essential form of ready money which reduces the risk of handling a huge amount of cash. Credit cards and debit cards as an alternative to cash. Legal tender, or narrow money m0 is the cash money created by a central bank by minting coins and printing banknotes. Plastic money is a term that is used predominantly in reference to the hard plastic cards we use every day in place of actual bank notes. Plastic money essay example free essays, term papers. However, plastic money has its share of issues that one must be careful about. Money is a mechanism that facilitates this process money may take a physical form as in coins and notes, or may exist as a written or electronic account. A credit card is a small plastic card issued to users as a system of payment. We need a better definition of her responsibilities.
By this definition, what we typically think of as money currencydoes, in fact, fit the economic definition of money, but so do a lot of other items in the economy. Plastic money is the generic term for all types of bank cards, credit cards, debit cards, smart cards, etc. M2 money supply a definition of the money supply that includes everything in m1, but also adds savings deposits, money market funds, and certificates of deposit money market fund. Hence cards were introduced in the world to resolve the issue of carrying huge cash. To study consumers reasons for preference of plastic money over hard cash keywords. In the united states, only a small fraction of the currency in circulation exists in. Does it make sense to introduce children to plastic money. The plastic money generally a credit or debit card with a magnetic strip many. Throughout the ages physical money in the form of objects, coins and notes has increasingly been replaced by more abstract means of payment such as bills of exchange, cheques and credit cards. The use of plastic money be it credit card, debit, prepaid, or reloadable card is getting some traction as reflected by the increasing number of retail companies cobranding with banks.
Plastics are persistent largescale pollutants, and plastic debris such as bottles, straws, containers, and plastic wrap and particulates have been found in many environmental niches, from mount everest to the bottom of the sea. Money is not a cigarette1 reading the histories of money and finance written in recent years, and observing the confusion in much of the debate about quantitative easing and fiscal policy, left me with a regret. Jul 30, 2019 virtually anything can be considered money, as long as it performs what we call the three major functions of money i. Here the focus is primarily on the forces sustaining the development of e money and on the central bank ability to conduct monetary policy in the presence of e money. Development of electronic money and its impact on the central. Nov 27, 2019 electronic money is money which exists only in banking computer systems and is not held in any physical form. M1 money supply a narrow definition of the money supply that includes currency and checking accounts in banks, and to a lesser degree, travelers checks. Plastic is material consisting of any of a wide range of synthetic or semisynthetic organic compounds that are malleable and so can be molded into solid objects plasticity is the general property of all materials which can deform irreversibly without breaking but, in the class of moldable polymers, this occurs to such a degree that their actual name derives from this specific ability. Electronic money is money which exists only in banking computer systems and is not held in any physical form. Economists differentiate among three different types of money. Plastic money includes atm cards, credit cards, debit cards etc.
This was largely due to lack of plastic money facilities among rural service providers, lack of adequate knowledge on importance of plastic money, low income levels and lack of confidence in the overall financial system. Pdf to build up a sustainable banking environment, technological. Plastic money definition and meaning collins english. May, 2019 by this definition, what we typically think of as moneycurrencydoes, in fact, fit the economic definition of money, but so do a lot of other items in the economy. Powerpoint presentation on money, paper money, plastic.
Information and translations of plastic money in the most comprehensive dictionary definitions resource on the web. The history of money concerns the development of social systems that provide at least one of the functions of money. The total value of liquid assets available for an individual or other economic unit, such as cash and bank deposits. The use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds, or pay bills. Development of electronic money and its impact on the. The recent growth in the use of plastic money mainly credit and debit cards has been. Yes, the advantages of plastic money over cash has made it a best friend of many. If a country uses paper money, it need not spend anything on the purchase of gold or minting coins. Like conventional money, plastic money can function as a medium of exchange, a unit of account and a store of value. This paper will focus on the development of electronic money and its impact on the central bank role and monetary policy. It allows its holder to buy goods and services based on the holders promise to pay for these goods and services. Project report an analysis of the use of plastic money in. Being nonperishable and also comparatively stable in value, the value of other assets can be stored in the form of money. Definition definition, the act of defining, or of making something definite, distinct, or clear.
Money being generally acceptable and its value being more or less stable, it is ideal for use as a store of value. Plastic money aka polymer money is made out of plastic and has formed an important part of our daily life these days. Although my brief was to write a philosophy book, i did not make the definition of money a subject of direct analysis. Youll also take a look at how it benefits society and explore the different types of money. Such systems can be understood as means of trading wealth indirectly. In this lesson, youll learn what money is and its four basic functions. That is, unlike credit provided through a credit card, the customer pays for the spending power in advance. Again, there is no uniform standard across jurisdictions on the definition of simplified. Chargit chargit was the first actual bank card and was issued in 1946.
Money is now given its value by government fiat or decree, ushering in the era of enforceable legal tender, which means that by law, the refusal of legal tender money in favor of some other form of payment is illegal. Companyissued charge cards can be found as far back as the early 1900s. Money is an officiallyissued legal tender generally consisting of notes and coin, and is the circulating medium of exchange as defined by a government. Studycopter is the best way to get your best possible score on exams such as ibps po, clerk, so, ssc, rrb, sbi and gmat. With this in mind, it is not surprising that there were different types of money throughout history. The future of money the future of money the future of money moneys destiny is to become digital. Electronic money e money is broadly defined as an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e money issuer. Economists are quick to point out that money in an economy can take different forms, but these different forms usually carry different levels of liquidity.
Plastic money definition at, a free online dictionary with pronunciation, synonyms and translation. Plastic pollution, harmful accumulation of synthetic plastic products in the environment. The issuer of the card grants a line of credit to the. Bank money, or broad money m1m2 is the money created by private banks through the recording of loans as deposits of borrowing clients, with partial support indicated by the cash ratio. This term is also used for the broader realm of electronic commerce. Greene, csu 7 medical plastics and composites use containers bottles, bags drug delivery iv bags, syringes tubing and tools for surgery implants, artificial skins the use of plastic materials in the medical field, about 4 billion dollars in 2000 us. Plastic money definitely provides an alternative in some cases and compliments cash as a medium. A study on the importance and popularity of plastic money in aluva. All debit cards, credit cards, forex cards,prepaid cash cards,store cards which use in place of bank notes or actual currency for promoting digital transaction is known as plastic currency. Fiat money, if physically represented in the form of currency paper or coins can be accidentally damaged or destroyed. They can come in many different forms such as cash cards, credit cards, debit cards, prepaid cash cards and store cards. Technological advances in electronic recordkeeping have made credit cards as ubiquitous as cash as means of payment in many economies. How nonbank lenders plan to utilise rbis second booster shot. Aug 19, 2019 the basic definition of money is anything that is commonly accepted by a group of people in exchange for goods, services, or resources.