Characteristics of credit money

Credit money is to credit as a guarantee, issued through certain credit procedures, as a means of circulation and means of payment of the form of money, is the modern form of monetary development. In fact, it is a kind of credit instrument or debt certificate. Credit money is a credit as a guarantee, issued through certain credit procedures, as a means of circulation and means of payment of the form of money, is the modern form of monetary development. The basic features are: (1) credit money issued by the central bank is issued by the central bank on behalf of the state paper-based currency, it is a value symbol, does not have full intrinsic value, the gold base has disappeared. (2) Credit money is debt money. Credit money is actually bank debt certificates, credit money circulation is also the transfer of bank debt. (3) Compulsory. It is legal tender, the bank issued by the mandatory circulation and use. (4) The state can control and manage the credit money circulation through the bank, the monetary policy as an important means of realizing the national macroeconomic objectives.