1. Monetary policy is concerned with the cost of money. 2.
Bank-notes and coins are not the most important form of money in developed economies. 3. Cheques didn’t come into general use in the second half of the seventeenth century. 4. A payment
from one person to another merely requires that the banker
reduces the amount at one deposit and increases it at another. 5. The
transmission of payments by means of cheques creates problems when
the person making 6. The payment has an account at a different bank for
the person receiving the payment. 7. Most countries have a central
bank, which is responsible for the operation of the banking system. 8.
Several merchant banks date back to the nineteenth century