also provides additional security in the case of unexpected expenses, and allows the holder to take advantage of possible market opportunities. For consumers, these opportunities might take the form of discounts on goods and services; for companies, the opportunities might be capital expenditures required to meet some unforeseen market demand (Samuelson 1989).
All of these monetary functions can be accomplished with coins and currency as well as with "virtual" money. The latter part of the twentieth century saw a significant increase in the number of cashless transactions that take place in everyday consumer experiences in the United States as well as at the corporate level. While many consumers still prefer to use dollars to transact their daily activities, cashless transactions, whether through debit cards, credit cards or combinations (including toll road transponders) are increasingly common.
Although CyberCoast is known for being a high-technology nation with sophisticated consumers who are used to conducting cashless transactions, it would be unwise to try to eliminate currency altogether in the new nation. Although a nation formed in the Pacific Northwest can be assumed to be politically stable, it must conduct international trade and encourage its own citizens to have confidence in their currency. This is particularly important since CyberCoast is located in such close proximity to one of the most stable and powerful currencies in the world--the American dollar--as well as close to two large markets (Canada and the United States). Also, there are likely to be citizens of CyberCoast who do not maintain bank accounts and who prefer to operate entirely on a cash basis; for these individuals alone (and for those who carry cash for small transactions), it is prudent for the new nation to have physical currency for its citizens.
Both currency and coins will be used, with the currency available in 1, 5, 10, 20 and 100 d...