Modern Forms of Money

Currency, plastic money, and demand deposits are all considered modern forms of money. Let's explore each of these forms in detail:

Currency:
Currency refers to physical money in the form of coins or banknotes that are issued by the government and circulated within an economy. It is the most widely recognized and commonly used form of money. Currency notes are printed with specific denominations and are accepted as a medium of exchange for goods and services. The value of currency is guaranteed by the government, and it serves as a legal tender within a particular country.

Plastic Money:
Plastic money, also known as digital or electronic money, is a form of non-physical currency that exists only in electronic form. It includes various electronic payment methods such as credit cards, debit cards, and digital wallets. Plastic money allows individuals to make transactions electronically without the need for physical cash. These forms of payment are widely accepted by merchants and provide convenience and security for both consumers and businesses.

Demand Deposits:
Demand deposits are a type of money that can be accessed on demand by depositors. They are funds held in a bank account that can be withdrawn at any time without prior notice. Demand deposits include checking accounts and current accounts, where individuals and businesses can deposit and withdraw money as needed. These deposits are considered a form of money because they can be used for transactions, transfers, and payments.

Conclusion:
In conclusion, currency, plastic money, and demand deposits are all modern forms of money. Currency represents physical money in the form of coins and banknotes, plastic money includes electronic payment methods such as credit cards and digital wallets, and demand deposits refer to funds held in bank accounts that can be accessed on demand. These forms of money provide individuals and businesses with various options for conducting transactions and managing their finances.