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MAN 2300 MAN2300 literature review – Everest College

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MAN 2300 MAN2300 literature review – Everest College

CHAPTER TWO
LITERATURE REVIEW
2.0. Introduction
This chapter deals with the review of relevant literatures on the research topic. There view of related literatures is broken into conceptual review, theoretical review  and methodological/ empirical review. The reason for breaking down the outline isto provide an elaborate approach to the research topic.
2.1. Conceptual
Review 2.2.1.
A Glimpse at Pre-Cashless Policy Era This section views how conventional money has evolved over time. Money performs a number of roles in economic activity; it is a unit of account, store of value, medium of exchange and means of deferred payment.
Also, money has evolved over the centuries to minimize the friction of transaction costs that are involved in mediating exchange.

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MAN 2300 MAN2300 literature review – Everest College

CHAPTER TWO
LITERATURE REVIEW
2.0. Introduction
This chapter deals with the review of relevant literatures on the research topic. There view of related literatures is broken into conceptual review, theoretical review  and methodological/ empirical review. The reason for breaking down the outline isto provide an elaborate approach to the research topic.
2.1. Conceptual
Review 2.2.1.
A Glimpse at Pre-Cashless Policy Era This section views how conventional money has evolved over time. Money performs a number of roles in economic activity; it is a unit of account, store of value, medium of exchange and means of deferred payment.
Also, money has evolved over the centuries to minimize the friction of transaction costs that are involved in mediating exchange. In fact, the process can be observed from the development of the very first monetary products.
For instance, conductingeconomic transactions in barter economies involved high transaction costs as considerable time and effort was required in finding suitable partner.Subsequently, another facet in the evolution of money was the need for fungibilityand divisibility.
Hence, the advent of study money (notes and coins) made theprocess less costly by allowing people specialize in production based on theirstrengths and by enabling the monetary authorities to mint coins in convenientdenominations, thereby creating divisibility (Baddeley, 2004).
Several attempt have been made to come up with a more mobile money inelectronic means and thus bring about innovation from the central bank of Nigeria, among this innovative ideas brought up electronic banking.
According to ECB(1998), electronic money is broadly defined as an electronic store of monetaryvalue on a technical device that may be widely used for making payments toundertakings other than the issuer without necessarily involving bank accounts inthe transactions, but acting as a prepaid bearer instrument.
Analogous to thisdefinition is that of cashless economy wherein there exist no notes and coins issuedby central banks but by private financial institutions (Costa and De Grauwe, 2001).
2.1.2. Conceptualising Cashless Economy
It is imperative to know that Cashless economy does not refer to an outrightabsence of cash transactions in the economic setting but one in which the amountof cash-based transactions are kept to the barest minimum. It is an economicsystem in which transactions are not done predominantly in exchange for actualcash.
It is not also an economic system where goods and services are exchangedfor goods and service (the barter system). It is an economic setting in which goodsand services are bought and paid for through electronic media (Baddeley, 2004).
Itis defined as “one in which there are assumed to be no transactions frictions thatcan be reduced through the use of money balances, and that accordingly provide areason for holding such balances even when they earn rate of return”( Babalola,2008). In a cashless economy, how much cash in your wallet is practicallyirrelevant.

MAN 2300 MAN2300 literature review – Everest College

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