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Quasi-money as non-cash money. Their impact on the economy

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Quasi-money as non-cash money. Their impact on the economy

Quasi-money (near money) - bank deposits and other highly liquid assets that are not an official means of payment, but can be used to repay liabilities.


The word "quasi-money" itself is a kind of mixture of transcription and translation of the English words "quasi" - supposedly and "money" - money, actually it turns out that quasi-money is supposedly money, that is, something that can be paid in case of need, but such assets are less liquid than ordinary money in the form of banknotes, coins and non-cash money.


Valid money includes:

Commodity money - goods used as money (previously shells, furs, salt, etc.).

Valuable money - money created from a certain valuable asset (gold and silver coins).

Signs of value include:

Defective money is a substitute for full money, i.e. banknotes whose real value is many times less than the nominal value.

Quasi-money - a variety of assets, involving the owner of the values or real money, or the presence of third parties obligations to the owner.

If we consider the "evolution of money", then we have evolved from banknotes having real value to banknotes having a notional value, and now we come to a system of obligations in which there are no banknotes, but there are a variety of obligations indicating the presence of such signs. Everything may seem confusing, but in fact it is enough to give a simple example to understand what is quasi-money.


Suppose you made a short-term bank deposit of $ 1 million. In reality, you no longer have this million on hand, since it is in use of the bank, but you have documents that confirm that you have a deposit of $ 1 million, that is, that the bank has obligations to you in the amount of 1 million dollars + interest.

Exactly the same picture with any other assets that are related to quasi-money, for example, with:

by bank cards;


by check;

savings certificates;

insurance certificates, etc.

Any asset that implies the existence of obligations to you may already be quasi-money, for example, if you have a bill for $ 1,000, then you do not have that thousand in your hands, but potentially it is in the form of receivables.


Naturally, such money can be accepted as a means of payment. In particular, if you have debt, then in the absence of funds, you can often pay off receivables, that is, "sell your debts." For example, “Company A” owes “Company B” dollars, but at the same time “Company B” owes “Company A” also $ 500 (on a bill), in which case “Company A” transfers a bill for 500 to the payment of “Company B” dollars from "Company B", as a result, two obligations turn into one, namely, "Company B" will owe "Company B" $ 500 per bill.


The use of quasi-money has a positive effect on the economy, in particular, the money supply in circulation decreases, while the market liquidity grows, and the turnover on it, since it becomes possible to pay with debt instruments, that is, possession of money is not so necessary for the purchase of goods, possession of quasi-money is enough.

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