http://www.lendinguniverse.com/ broker commercial loans The largest element in our money supply consists of deposits-i.e., checking accounts in commercial banks. Checking accounts are nothing more than bookkeeping entries in the records of banks; they are not embodied in physical form like coins and bills. But they are money as much as the coins in our pockets, because checking accounts function as money. They are generally acceptable in exchange for goods and services and for payment of debts. Indeed, the volume of payments made by check is far greater than the amount of payments made with currency and coin. We are all familiar with bank deposits and with the use of checks. But what is a bank deposit? It is not, as we are inclined to think, a pile of coins and bills in the vaults of a bank. A bank deposit is a · promise on the part of the bank to pay immediately on request (on demand) of the customer who owns the deposit. It is a liability of the bank. The bank owes the owner of a bank deposit and will pay him or another party he designates in coins, paper money, or with a check on another bank if he wishes. A check is an order to the bank to pay a s.pecific sum.
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