representative money

Definition

Something that is not in the physical form of currency, but represents the intent to pay money. A paper check from a banking institution is an example of representative money. The check is not a physical piece of money, but it implies the intent to repay.

Use this term in a sentence

I had some representative money, which was good, because it represented the intent to pay some money in the future.

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You need to make sure that you are able to get your hands on some representative money when you are all out of liquidity.

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The representative money essentially functioned as an IOU, we were pleased with the receipt of said document as it is an asset.

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