Question

Give an example of credit money.​

Answer 1

Answer ✅

: Credit money refers to a future monetary claim against an individual who has used the credit facility to buy goods and services. Credit money can be of different types such as the basic IOUs, negotiable instruments, debt instruments and so on.

Answer 2

ᴄʀᴇᴅɪᴛ ᴍᴏɴᴇy ʀᴇꜰᴇʀꜱ ᴛᴏ ᴀ ꜰᴜᴛᴜʀᴇ ᴍᴏɴᴇᴛᴀʀy ᴄʟᴀɪᴍ ᴀɢᴀɪɴꜱᴛ ᴀɴ ɪɴᴅɪᴠɪᴅᴜᴀʟ ᴡʜᴏ ʜᴀꜱ ᴜꜱᴇᴅ ᴛʜᴇ ᴄʀᴇᴅɪᴛ ꜰᴀᴄɪʟɪᴛy ᴛᴏ ʙᴜy ɢᴏᴏᴅꜱ ᴀɴᴅ ꜱᴇʀᴠɪᴄᴇꜱ. ᴄʀᴇᴅɪᴛ ᴍᴏɴᴇy ᴄᴀɴ ʙᴇ ᴏꜰ ᴅɪꜰꜰᴇʀᴇɴᴛ ᴛyᴩᴇꜱ ꜱᴜᴄʜ ᴀꜱ ᴛʜᴇ ʙᴀꜱɪᴄ ɪᴏᴜꜱ, ɴᴇɢᴏᴛɪᴀʙʟᴇ ɪɴꜱᴛʀᴜᴍᴇɴᴛꜱ, ᴅᴇʙᴛ ɪɴꜱᴛʀᴜᴍᴇɴᴛꜱ ᴀɴᴅ ꜱᴏ ᴏɴ.