Cheque An Instrument

Cheque An Instrument

Cheque, an instrument or document by which bank deposits are transferred between individuals. A -written order authorizing a banker to pay a specified sum of money to the person named in the order. When one person pays another by means of a cheque the drawer's bank balance is reduced by the amount of the cheque, the payee's is correspondingly increased.

Cheques originated in the lath seventeenth century and grew rapidly in volume in the nineteenth century, especially after the 1844 Bank Charter Act, which limited the note issue. They form the main part of the means of payment in Britain: in the early 'g'o's bank deposits were some £9,000 million and bank-notes between £2,000 and £2,500 million. They are also in common use in the Commonwealth and in North America but less elsewhere. 81

Cherry-picking. See Loss Leader.

Choice, the act of preferring one course of action to others. It lies at the centre of the economic problem; economics is very largely concerned with the principles explaining how choices are made. Human beings have to decide how to use limited resources to attain the largest possible satisfaction of their wants. Since wants cannot be satisfied completely and the available means can be used to obtain different ends and given ends in different ways, there must be choice between ends and between means.

Decisions on how people are to earn their living, how they are to distribute their spending, how goods are to be produced all aspects of the basic problem of choice may be decided in several ways. In one society choice may be guided almost exclusively by custom, people work in different occupations according to their social origin, and consumption and production are organized in conformity with traditional patterns. In another society choice may be exercised by only a small ruling group, work being done under orders rather than for material reward, and consumption goods allocated from above by the state. In a third type of society choice may be guided predominantly by a price system. It is with this last type of society that economics is chiefly concerned. Economic theory is useful wherever choice is or can be expressed in varying degrees through a price mechanism in capitalist or communist countries.

Further reading Economic Growth - Economics Growth

Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this site is therefore not a final statement of economic doctrine.

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