ABSTRACT
In analyzing the role of money and credit, is to recognize that an advanced industrial economy like that of the United States is a monetarized production system, and that such a system presumes the existence of credit-based, as distinct from commodity or even fiat, money. Nonetheless, the role which money plays in an advanced economy like that of the United States has yet to be made explicit. Under a credit-based system of money, payment is normally made by check, or bank draft. A check is a piece of paper authorizing the bank holding the funds of the party making the purchase to transfer a certain amount of those funds to the individual or organization designated as the payee. Once a financial sector with banks as the key component has evolved, payment relying on commodity or even fiat money is likely to be superseded, in the majority of business transactions, by a system of payment based on checks.
