Credit Theories of Money Quiz

According to credit theories of money, credit and money are considered to be the same thing, seen from different points of view.

Some proponents argue that money is best understood as debt even in systems often understood as using commodity money.

The two common strands of thought within credit theories of money are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of debt.

Plato has been identified as the first known advocate of a credit theory of money according to Joseph Schumpeter.

According to anthropologist David Graeber, for most of human history, money has been widely understood to represent debt.

Digital forms of money could provide broad and inexpensive access to financial services for 1.7 billion people without traditional bank accounts, and facilitate trade and market integration.

The transition to digital money could exclude those on the other side of the digital divide, lead to fragmentation, currency substitution, and loss of policy effectiveness if not well managed, coordinated, and regulated.

In the near future, an employer could deposit the worker's paycheck in a digital wallet, allowing her to send money to relatives in other countries more cheaply and efficiently.

Emerging markets and lower-income countries stand to gain the most from the potential transformation of the financial sector through digital money.

The successful adoption of digital money in emerging markets and lower-income countries requires well-managed, coordinated, and sound regulation.