Need of the Study Essay

It is rightly said plastic capital is urgency of the hour. People ar using these cards on a immense scale. But after considering the material available on the subject, it is seen that the whole defrayment process of processing these cardsIntroductionMoney is any situation or verifiable disc that is generally veritable as recompense for goods and services and repayment of debts in a particular country or socio-economic context.123 The main functions of currency are distinguished as a strong point of exchange a unit of account a store of hold dear and, perhaps, a standard of deferred payment.45 Any item or verifiable record that fulfills these functions can be considered money.Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money.4 Fiat money, like any qualify or note of debt, is without intrinsic use value as a physical commodity. It derives its value by being declared by a gove rnment to be legal tender that is, it must be accepted as a form of payment inwardly the boundaries of the country, for all debts, humankind and private.citation needed Such laws in practice cause fiat money to acquire the value of any of the goods and services that it may be traded for within the nation that issues it.The money supply of a country consists of currency (banknotes and coins) and comm all includes bank money (the balance held in checking accounts and savings accounts). Bank money, which consists only of records (mostly computerized in modern banking), forms by far the largest part of broad money in developed countries.678