Critiquing a Common Misconception about Electronic Payments
A friend makes the following statement: "When I pay for coffee by tapping my phone, my bank takes the money out of my account and sends it to the coffee shop's account."
Analyze this statement. Based on the understanding that electronic payments function by transferring a bank's own liabilities, explain why your friend's description is a common simplification but not technically accurate. Describe what is fundamentally occurring on the bank's records, assuming both your friend and the coffee shop use the same bank.
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Economics
Economy
Introduction to Macroeconomics Course
Ch.6 The financial sector: Debt, money, and financial markets - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Analysis in Bloom's Taxonomy
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