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Society enforces the use of token money by making it legal tender.1________________________. In modern economies, token money is supplemented by IOU. An IOU money is a medium of exchange based on the debt of a private firm or individual. 2________________________. 3________________________. You can write a cheque to yourself or a third
party and the bank is obliged to pay whenever the cheque is presented. 4________________________.
The law says taken money must be accepted as a means of payment.
A bank deposit is IOU money because it is a debt of the bank.
When you have a bank deposit the bank owes you money.
Bank deposits are a medium because they are generally accepted as payment.