your bills usually come every month to be paid. What should I stress is that nowadays banking system is not the same it used. The upper limit is called ceiling, the lower one floor, and a collar is an arrangement that fixes both the upper and lower limits). We can make rather strong assumption that trading is very expensive under such economy. These goldsmith bankers were an early example of a financial intermediary an institution that specializes in bringing lenders and borrowers together. Money also is supposed to hold value over time. In the United States the central bank is the Federal Reserve. A bank deposit is IOU money because it is a debt of the bank. Monetarists do not support this view.
To live in Germany, you need a bank account. Read here how you can open a bank account and organise your finances.
Some banks even try to assign each of their major customers to a personal banker. It was the first development that turned goldsmiths into bankers. Another kind of economy, close to this one in terms of inconvenience is barter economy. Not all of these innovations are wide-spread in Russia but step-by-step we are getting closer to using credit cards, cheques, etc. Bank can also sell a private pension plan or offer investment advice bout shares, bonds, mutual funds and. These days many loans are made with floating or variable interest rates that change according to the supply and demand for money (sometimes there are arrangements limiting rates. In prisoner-of-war camps, cigarettes served as money.