Credit Money

AAA

DEFINITION of 'Credit Money'

Any future monetary claim against an individual that can be used to buy goods and services. There are many forms of credit money, such as IOUs, bonds and money market accounts. Virtually any form of financial instrument that cannot be repaid immediately is considered credit money.

INVESTOPEDIA EXPLAINS 'Credit Money'

During the crusades of the middle ages, valuables and goods were held in trust by the Knights Templar of the Roman Catholic church. This led to the creation of a modern system of credit accounts that is still prevalent today. Public trust has waxed and waned in credit money institutions over the years, depending on economic and other factors.

RELATED TERMS
  1. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  2. Emergency Credit

    A loan given by a federal reserve bank to a non-bank institution ...
  3. Credit Card

    A card issued by a financial company giving the holder an option ...
  4. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Term Deposit

    A deposit held at a financial institution that has a fixed term. ...
Related Articles
  1. Savings

    Are Your Bank Deposits Insured?

    Learn how the FDIC is helping to keep your money in your pockets.
  2. Credit & Loans

    Take Control Of Your Credit Cards

    The plastic in your wallet doesn't have to hurt your finances. Learn how to manage it responsibly.
  3. Retirement

    Understanding Credit Card Interest

    Paying these rates can impact your disposable income and your investment returns.
  4. Options & Futures

    Home-Equity Loans: What You Need To Know

    We shed light on why consumers decide to use this form of debt and whether it is a good alternative.
  5. Options & Futures

    Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.
  6. Stock Analysis

    Is Arena Pharmaceuticals In Trouble?

    Arena Pharmaceuticals' approval of its weight-loss drug Belviq in 2012 has brought anticipations so high that its share price soared to $12 per share.
  7. Investing News

    An Emerging Relationship: Tech Startups & Marijuana

    An increasing number of funding platforms are emerging to support marijuana start-ups, although the marijuana industry is still controversial.
  8. Stock Analysis

    Will Ride Sharing Crush Medallion Financial?

    Driving a taxi cab is far from a glamorous business, but in many areas of the country, it's a business that involves a lot of money.
  9. Stock Analysis

    What Is Marvell's Mobile Progress?

    Although Marvell is far from the top in the processor market, it plans to keep investing in this business even as the competitive environment gets tougher.
  10. Economics

    Analysing Risks On The Upcoming UK General Elections

    Rising UK political risk keeps investors funds on the sideline.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center