Many or most people, if not all, know that banknotes and coins are the popular forms of money today. Money referred to certain banknotes and coins pertains to cash. But what about checks and credit card, stocks and bonds and other forms of securities and electronic systems, are they qualified to be called monies?

For many people, money refers to banknotes and coins that can be exchanged for things that a person needs or wants. It is regarded as a medium of exchange. It has a standard of value with reference to its use a measure to the relative worth of various goods and services. It is also regarded for it having a store of value for it has an attribute to be saved, stored and recovered and expectedly useful when it is brought back.

Money also serves as a unit of account for it is used as a unit of measurement of the value of goods and services or other forms of transactions in the market. Being a unit of account, money is divisible, that means, a certain thing of value can be divided into several units without destroying its value. It also has a specific weight, size or measure to be verifiably accountable. It is also fungible, which means a unit or piece of it can be exchanged to any goods tantamount to its value regardless of the quantities received from the transaction.

For a certain thing to be called money for use in different financial transactions, it has to have a store of value as well as a standard of value. Aside from being a medium of exchange, it must also serve as a unit of account.

Coins and banknotes are commonly used as moneys for they have the attributes necessary for them to be considered as such. A 50 dollar banknote can be denominated into two 20 dollar bills and one 10-dollar bill or five 10-dollar bills. It can also be applied in coins wherein a quarter can be exchanged for two dimes and one nickel or 5 nickels. Banknotes and coins also have another attribute and that is their quality as a legal tender. That means, the banknotes and coins can be used as recognitions for the settlement of debt.

Moreover, banknotes and coins are moneys that are in circulation. It means, that they are produced, distributed and retired and then produced again if the demand for it is high based on market condition.

But what about cheques, credit cards and debit cards. Are they qualified to be called as moneys?

Cheques are widely regarded as cash equivalent instrument. They have become conventional nowadays in the payment of liabilities or at the time of purchase when the transaction involves big amount. Instead of paying several banknotes which are prone to theft or loss, settlement of debt account in the form of cheques may seem to be practical. To have cheques, one must have a checking account with a bank.

Nowadays, credit card and debit cards have been widely used primarily because they can be used for cashless purchase. Credit card is a more popular tool for it can entitle the user to make purchases even if he or she can't be able to pay at the time of the transaction.

But is credit card a form of money? This is a question that you may have in mind. I also wonder if it falls in the category of money.

Now, let's make a recall of the definition of money. Money is used as a medium of exchange. Although a credit card can be used for cashless purchases, we cannot surrender the card in exchange for the things that we obtain with value. Moreover, it cannot be converted into liquid cash. Further, when the credit limit is reached, we cannot anymore use the card for another purchase unless the balance due is settled.

Cheques and debit cards can fall in the category of money. Aside from currency, money can also in the form of deposit accounts, travelers checks, savings account, time deposits and balances in money market mutual funds. There are other forms of money recognized by several jurisdictions.