It was not planned and happened by accident. See Paul Grignon's video "Money as Debt" - Part 1. Basically what happened was that people took their gold to a vault owner for safekeeping and were walking around with receipts for the gold. When they wanted to buy something some people just started handing over the receipts instead of withdrawing their gold and paying with it. The "banknote" was born. Sounds plausible.
@illmatic33, Depends which bank it was written on and which bank you cashed it in. Same bank, zero minutes. A foreign bank, could be several days. There's a scam involving Nigerian banks where you deposit a check, send them money, and then it turns out to be fake but took so long to find out that you thought it was cleared.
Why not create a system where everyone's value is stored on a secure networked computer system, no more need for cash or gold. If someone wants to exchange money, they can of course write a check but for the most part, all transactions can be made simply by the use of a fingerprint scanner. This would make a person's money very difficult to steal and it would be easily tracked and it might be useful in dealing with crime, such as the sell of illegal drugs, tax evasion, and the like.
If someone write you a check and you already cashed it, how long does the person have before he/she can no longer stop payment? ps. amount of $500 (if that matters)
OK bank gives person one 10 bank notes for 10 grams of gold ,than person one writes his friend a check for 10 grams who goes to the bank and takes the gold , problem is person one still has the 10 bank notes how are they made invalid by the bank in the era of the gold standart ?
The check amount is deducted from the Orange part of A's deposit, which is the Gold that is Not represented by Bank Notes. You cannot write a check for Gold that you already exchanged for Bank Notes.
At this point it seems like the bank notes become slightly more useful than the gold which makes the gold completely useless so why not just do away with all the gold but then that wud make the bank notes completely unfounded i.e useless. Its all shady biz
Too good - all videos. Examples are hypothetical but so very easy to understand.
Thanks and God bless.
The history of checks and banking can be very interesting. I am just glad that checks are still around nowadays.
great video man
It was not planned and happened by accident. See Paul Grignon's video "Money as Debt" - Part 1. Basically what happened was that people took their gold to a vault owner for safekeeping and were walking around with receipts for the gold. When they wanted to buy something some people just started handing over the receipts instead of withdrawing their gold and paying with it. The "banknote" was born. Sounds plausible.
@illmatic33, Depends which bank it was written on and which bank you cashed it in. Same bank, zero minutes. A foreign bank, could be several days. There's a scam involving Nigerian banks where you deposit a check, send them money, and then it turns out to be fake but took so long to find out that you thought it was cleared.
B is makin it rain! Bend over to the front, touch your toes!
The guy with 500 gold pieces got a perfectly neat square, the guy with 400 got a squiggly rectangle. Money is (drawing) power.
good work keep them up~~~~~
Why not create a system where everyone's value is stored on a secure networked computer system, no more need for cash or gold. If someone wants to exchange money, they can of course write a check but for the most part, all transactions can be made simply by the use of a fingerprint scanner. This would make a person's money very difficult to steal and it would be easily tracked and it might be useful in dealing with crime, such as the sell of illegal drugs, tax evasion, and the like.
I see where this is heading...
Can someone please tell me how to download specific videos from Khan Academy
Pretty much the only time I use a check is when I owe a friend or family member money and I don't have any cash on me.
If someone write you a check and you already cashed it, how long does the person have before he/she can no longer stop payment?
ps. amount of $500 (if that matters)
Why do the people want the bank notes in the first place? Why not just keep the gold of that amount and keep the rest of ur gold in the bank.
OK bank gives person one 10 bank notes for 10 grams of gold ,than person one writes his friend a check for 10 grams who goes to the bank and takes the gold , problem is person one still has the 10 bank notes how are they made invalid by the bank in the era of the gold standart ?
The check amount is deducted from the Orange part of A's deposit, which is the Gold that is Not represented by Bank Notes. You cannot write a check for Gold that you already exchanged for Bank Notes.
At this point it seems like the bank notes become slightly more useful than the gold which makes the gold completely useless so why not just do away with all the gold but then that wud make the bank notes completely unfounded i.e useless. Its all shady biz
this is crazy, a house is just 100 times more expensive than an apple
If he likes the weight of the money, maybe he should of kept his gold.....I'm guessing he's doing something else!
@footlestool Rome