241–250 of 327 posts
This may be a stupid question...but is there a paper dollar corresponding to every dollar I have in my bank account? I always assumed that some of the currency issued by governments was exclusively digital.
This may be a stupid question...but is there a paper dollar corresponding to every dollar I have in my bank account? I always assumed that some of the currency issued by governments was exclusively digital.
No.
> I always assumed that some of the currency issued by governments was exclusively digital.
They aren't even really issues by the government for the most part. While government policy shapes the framework in which money is created, much is created by private lending.
This may be a stupid question...but is there a paper dollar corresponding to every dollar I have in my bank account? I always assumed that some of the currency issued by governments was exclusively digital.
Most banks are required to keep 10% of the deposits https://www.investopedia.com/terms/f/fractionalreservebankin...
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I've been in the eurozone since it started.. only ever saw 500 euro bills being exchanged in casinos.
I exchanged cash in Canada before heading to EU for 10 weeks and the kiosk gave me all EUR500 notes and said it was all they had.
At least I learned that France has several central banks.
You’re kinda SOL if you go to a euroized non-EU country (Montenegro or Kosovo).
This problem has probably been exacerbated by the fact the the $500 euro note has not been issued since 27 April 2019[1]. I wonder if making storing euros in cash 2.5 times harder (500 versus 200 euro notes) was part of the reason the 500 euro was retired. [Edit] The legal storing of cash. The stated reason was the criminal use of cash. [1] https://en.wikipedia.org/wiki/500_euro_note
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According to that same article, the reason for retiring the note was because the people who benefited the most from its existence are criminals, who need to do their business in cash -- the fewer notes, the easier for them. That includes storage, I guess. Still, I'm personally not in the eurozone, but in general terms for the end user high-denomination notes are not very useful unless you're gonna store them under yo…
> Actually using them to buy things is a pain, since most businesses won't accept them. For me it always went smoothly when buying something that exceeded the value of the high note. Your experience may differ if you buy a roll in the bakery.
Didn’t think they would know any better than the cashiers...
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I wonder if we are meant to think of drug dealers but the governments are just as worried about the local handyman or small construction company getting untraceable cash payments without paying taxes.
They aren't getting enough €50 or $100 notes to be a real logistical problem. You can put 10k in your pocket, and count it in a minute or two.
But now harder to do that with 5x the bills. Or suddenly stuck with 500s that nobody wants to take.
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Why couldn't you use a cashier's check?
Some people would balk at the idea since they have bad credit and no bank account, and hence have to fork over a fee to walmart/publix/your local check cashing place in order to make it liquid. Cash works for everyone. I agree, cashiers checks are safer, but some people have reasons to prefer cash.
In the UK, government benefits are paid by bank transfer.
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Check and cashier's check are different things. A cashier's check is like a domestic SWIFT.
The point the person you are replying to is making is that to Europeans, checks are a thing that only exist in Hollywood movies. It's difficult to imagine in a modern world, people or institutions writing or printing something on a piece of paper, and saying, "here, this is money".
Got stuck behind someone at the Carrefour (grocery store) paying with one. Ugh.
Earlier quoted context omitted.
According to that same article, the reason for retiring the note was because the people who benefited the most from its existence are criminals, who need to do their business in cash -- the fewer notes, the easier for them. That includes storage, I guess. Still, I'm personally not in the eurozone, but in general terms for the end user high-denomination notes are not very useful unless you're gonna store them under yo…
> Actually using them to buy things is a pain, since most businesses won't accept them. For me it always went smoothly when buying something that exceeded the value of the high note. Your experience may differ if you buy a roll in the bakery.
I took it on my trip to Austria a week later and got it changed at the post office.