I’ll keep that in mind Jonathan Woodall. And what is so magical about that $10,000 mark?
And for your that second part of your statement msgotrocks, “The instruments you listed, as well as mutual funds, etc. do not allow for immediate or even quick access to your money. If you close out a CD before maturity you could end up owing the bank money.” (i dont know how to do the quote thing) i was trying to imply that i wasnt going to need this money in the near future.
troub, i go to the store at which i started my account. If i have a phone bill, i go to the sprint store and pay it. If i have an utility bill, i go to the utility company’s store and pay. They have drive-thrus at some of these
Oh and as for carrying around all that cash in my car that someone mentioned, u kind of twisted a mere example i had around into a form that does not fit my situation. I’ll state this again i only hold the cash money that i earn, out of the bank and pay my bills with it, and use it for spending money. I dont exactly go driving around with thousands of dollars. My bills arent hat expensive so i never have over 500 smackers out of the bank anyways.
Oh and as for the credit cards and checks, i am currently taking an economics class, in which, i was taught that these options of payment ARE NOT MONEY. I think there might be an exact quote that states this out of the book too. Anyways, unless this text is wrong, (which i doubt) i do see the points that are made. Nevertheless, i am probably stubborn to change my view when i have text saying one thing, a prof confirming it, and a test cramming this into my mind, only to have a large some of people posting messages here telling me otherwise.
Huh? When buying a car from a business asking “how much in cash” a check is considered as good as cash. They don’t want you to hand them $15,000 in cash. They just don’t want to loan the money.
An individual (of course) might be unwilling to accept a check because they don’t know you or because they are trying to hide the income.
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I’ll keep that in mind Jonathan Woodall. And what is so magical about that $10,000 mark? END QUOTED MATERIAL
There’s just a federal law or regulation (not sure which) that dictates that the bank do special paperwork (presumably made available to law enforcement) whenever more than $10,000 gets transacted in cash.
I am almost 100% certain that that particular law stems from Reagan-era legislation aimed at making it more difficult to engage in the illegal narcotics trade without running afoul of law enforcement.
I think the classic economic thinking on this is: “Checks are not money, the deposits backing them are.”
You’re right in that a check is not money. However, assuming that you, “superkentclark”, standing in front of me and issuing said check, are in fact “superkentclark”, and have the sum in question in your bank account, I will have no problem converting your check into money.
By the way…
A) I can generally check your account’s ability to cover a check when you issue it to me…
B) I can generally check your ID to check that you’re really “superkentclark” and
C) knowingly issuing false checks is a felony in many if not all states.
So, no your check isn’t cash, but I will have little trouble converting it into such.
While the other posters are correct in their interpretation of what is money, the only thing that you are required to accept for payment of a debt is cash. So, you can insist on cash, but refusing to take a check from your gf, unless you have reason to suspect her check, is being a little on the ridiculous side.
Well, congrats on your econ class and all, but I have a degree, and I can truly say that your vision of how the government works, your concept of what is (and is not) money, and your rationalization of (admittedly small-time) tax fraud to insure your own financial aid for college are all terribly flawed. You are getting excellent explanations here, with some extremely patient people trying (and doing a very nice job) to explain concepts like “M1” to you.
Then why did you ask the question? If you already had the book in front of you, and a professor telling you what you wanted to hear, why did you bother?
I can tell you that in my lifetime, I have run into many a textbook that had a mistake, and many a professor who didn’t have a clue… but I have run into far more people who didn’t choose to listen, or read, carefully.
And yes, the $10,000 limit is federally mandated. The object was to make it more difficult to conduct large scale criminal activities. The same reason that I had always heard that they took the $1,000 and $500 bills out of normal circulation, but I could be wrong on that.
The $10,000 mark triggers a requirement to file a Currency Transaction Report. Repeated transactions near $10,000 may lead to the completion of a Suspicious Activity Report.
johnathan woodall…you are close, but no cigar. the 10k limit was started by pres. nixon. actually, it was 5k under his tenure, don’t know when it went up.
Woodall, i think u are the only person that has understood my point on what money is. And yes, you are right that my check would be readily converted into cash.
brianmelendez, of your listed sites, they all back the notion that the monetary supply doesnt increase unless the cash or currency outside of the bank increases. Hmm… doesnt this prove my point that currency/cash is the true definition of money. I believe it was quicken that also stated that it depends on your definition of money. I guess that leaves any universal or definitive response to what in actual money. But this is not what i am going for.
Oh and i thought i said earlier that i preferred cash as repayment from my gf. When did i state that i wouldnt accept a check from her? Also i want to add that the example about the car i made earlier was referring to a car that would have costed less than $10,000… since that is the magic number.
And yes, Parrothead, it is a good idea to keep an objective mind about the material that is presented in classrooms. I do not always agree with what is said or stated in them, but when my book also has quotes from the Fed it makes it hard to believe that economists interpret what is and is not money worse than the average joe… not saying anyone is average though.
Well, I do remember having to report my current bank balance when filling out the FAFSA, but since you’re “fudging” that anyway :rolleyes:, why do you care if it’s a check or cash?
Actually, I happen to have a current FAFSA here…oh, yes, here it is, line 49: "As of today, what is your (and your spouse’s) total current balance of cash, savings, and checking accounts? Do not include student financial aid. (emphasis theirs).
So, it looks like it really makes no difference at all, to the financial aid office, whether that money is in the bank or under your mattress–you still are supposed to report it. Whether keeping a lot of cash makes it easier to lie to the financial aid folks–well, I can’t answer that.
The question has been answered, so I’ll close this thread.
superkentclark, your interest in asking the question seems to be inspired by your desire to commit fraud and/or tax evasion. Please don’t ask any more questions inspired by your desire to break the law.
