Example of Non-Cash Money Meeting Functions
Example of how a non-cash form of money meets the functions of money.
One example of non-cash money that meets the functions of money is a debit card.
1. Medium of exchange: A debit card allows you to make purchases and transactions without having to physically exchange cash. You can simply swipe or tap your card at a store or use it to make online purchases.
2. Unit of account: With a debit card, you can easily keep track of your spending and budgeting. Each transaction is recorded and you can view your balance and transaction history online or through your bank's mobile app.
3. Store of value: Your money is stored electronically in your bank account connected to your debit card. You can use it whenever you need to make purchases or withdrawals, ensuring its value is retained over time.
4. Standard of deferred payment: You can use your debit card to pay bills, make automatic payments, and set up recurring transactions. This allows you to defer payment to a later date while still being able to use your money in the meantime.