Money & Banking

Money is no longer only cash. The main forms are:

• Cash: notes and coins, the most acceptable and portable form.
• Bank deposits: money held in current accounts, spent directly using debit cards, cheques, direct transfers and mobile payments. Most money in a modern economy is in this form.
• Near money: assets that cannot be spent directly but can be quickly turned into cash, such as money in a savings (deposit) account, which must first be withdrawn or transferred into a current account before it can be spent.

The growth of digital and contactless payments means that the share of cash is falling, but the underlying functions of money are unchanged.