Cash

What is cash?

Cash is a monetary measure that performs three jobs: it is a medium of exchange, a store of value and a unit of account. That means it can be used for buying and selling, for savings purposes and to measure wealth.

Where have you heard about cash?

It's practically inescapable! As a term, it covers both literal cash, such as pocket change, and vast sums of virtual money, such as references to 'more cash for schools'.

What you need to know about cash...

Most cash these days is in electronic form, despite our attachment to the idea of banknotes and coins. Over the centuries, various media have served as cash, from cowrie shells to IOUs. What they had in common was people's willingness to accept them in payment, an expression of confidence that they would be honoured. That willingness continues today as most cash is 'de-materialised' into a series of entries sitting on the books of the banking system. The only alternative to cash is a barter economy, in which goods and services are exchanged directly.