Concept and types of monetary systems

Monetary system - is an organized form of currency in the country, that is, the movement of money in the domestic turnover of cash and non-cash, serving the sale of goods, the movement of loan capital and fictitious. It includes: currency, the scale of prices, types of money emission system - legally established currency issue, the state apparatus, which regulates the circulation of money.

Money is one of the commodities that are specific property which is the ability to exchange for another commodity. In the economic literature, this property is called liquidity. She's the greatest of money compared to other products that give them the character of a universal equivalent.

In any economic system is currently the main types of money are:

- Notes, i.e. paper money:

- Small change ("change").

This central money, which is responsible for issuing state.

As part of the goods sold is always in debt, under the bill, that any credit money issued by issued by issuing bank.

Banknotes - bank notes issued by issuing banks.

Promissory notes - debt (1 - 3 months), which gives the holder the right to demand payment of this amount by the deadline.

Cheque deposits, checks - a means of transferring ownership of the deposits in banks or other financial institutions. Money is not the write checks, and any demand deposits (deposits) in the bank.

In developed market economies deposits are more important than the paper money - up to 90% of trading is payable by check or by credit card. The use of credit cards ("e-money") requires a high level of computerization of banks, trade and service.