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Economics glossary · Policy and the financial sector

Payment system

What payment system means in economics, as one of functions of the financial sector, with an example and a question to test yourself.

Definition
Payment system
A payment system lets an economy exchange goods and services for money, through bank accounts, debit cards and transfers rather than cash.
Example

Can you think of an example of payment system?

Test yourself

Can you name the five functions of the financial sector?

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