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Uploaded by on Mar 29, 2010

http://www.lendinguniverse.com/borrowersconstructionloan.asp house loan application There are three major types of money used in the United States today-coins, paper money, and checking deposits. Until about 300 years ago metal coins were the only kind of money in use. But in the United States, and almost everywhere else today, coins are only small change. In the U.S. in 1970 there were $6 billion worth of coins in use, compared with $52 billion worth of paper money in circulation and bank checking accounts amounting to $163 billion. We consider demand deposits to be money because they can be used to pay for goods and services by means of checks. Commercial banks have other deposit liabilities called time deposits or savings deposits which differ from demand deposits only in the fact that they cannot be transferred by check. If you have a savings account and want to buy something, you have to present your pass book at your bank, withdraw currency, and then pay cash for what you buy. You cannot pay for anything with a savings deposit. the paper money in circulation consists of "fossils"-paper money issued for one reason or another in the past. These include U.S. Notes (the Civil War "greenbacks"), Treasury Notes of 1890, National Bank Notes, and Federal Reserve Bank Notes (as distinguished from Federal Reserve Notes). The long-familiar one-dollar silver certificates have been replaced by Federal Reserve Notes.
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