22 lines
768 B
Markdown
22 lines
768 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-03 -->
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# Bank Money
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## Definition
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A form of money represented by credit in the books of a bank, backed by actual deposits of precious metal, which maintains a stable value equal to the mint standard. Bank money is superior to current currency because it is not subject to wear, clipping, or debasement.
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## Source Chapter
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Book IV, Chapter 3
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## Context
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Smith describes the Bank of Amsterdam as the archetype, explaining how bank money provides security, transferability, and a reliable medium for international trade, while also generating revenue for the city through various fees and the interest on deposits.
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## Economic Domain
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Exchange
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---
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