Conclusion

Summing up during my research it was determined that introduction of money facilitates exchange and helps in the development of trade and commerce. Money is extremely valuable social instrument which has largely contributed to the growth of national wealth and social welfare. It has ensured the smooth functioning of the modern economic system.

The target tasks have been disclosed.

Money is something that is very difficult to explain . People in various cultures think of money in different ways. Many people think of money as a currency –metal coins and paper bills . We need it to buy the things in life that we need. We also get money for the work that we do. So, money is a way of exchanging goods and services .

Money is very important in our lives. They have evolved over the centuries and had many forms ranging from seashells and stones to plastic cards.

Over the years, they have also acquired different functions such as (Money is a store of value, money is a unit of account, money is a medium of exchange) as well as characteristics such as (durability, portability, divisibility, uniformity, limited supply, acceptability). These two aspects have helped me more closely examine the evolution of money its advantages and disadvantages.

Thus it was established that people nowadays are increasingly using electronic money instead of hard cash. This is caused by fast and convenient payment and obviously that Digital money products have the potential to replace central bank currency. Unfortunately there are a few drawbacks such as : The increased use of electronic money will: limit the central bank’s ability to control money supply, increase the velocity of money, lower seignorage income, decrease reserves, decrease international monetary control and change the money multiplier.

Also important is the Social and psychological factors .Our psychological and economic relationship with our cards is complex.Figures show that plastic encourages consumers to spend more, especially credit CARDS. Unlike electronic money With cash you get instant feedback on how much you have spent and how much you have left. The transaction feels more real. The act of punching in a pin as a promise to pay for something at a later date is, on the other hand, intangible. But if you look on the other hand we can say that plastic can be used to help us control our financial decisions.

Summary

The research work is devoted to investigation of money as an integral part of our lives.

The first theoretical part of my work is about the origin and development of money.

It discusses the basic features, varieties and characteristics of money and also about stages of development and evolution of money for centuries.

In the study, it is clear that over time established three basic functions of money, and the most popular form of this electronic money.

Thus arose the problem of replacement of real money on virtual such as credit and debit cards.

That this issue is devoted to the second part of my research in which I stressed the advantages and disadvantages of introducing in the cash flow of electronic money as part of the common aspects and economic system in general .

In my view, this study helps evaluate how just changing the means of payment may influence the monetary policy and even on consumer behavior.