Final answer:
Invoices and bills are payment requests for goods or services. They can be settled using checks, which when deposited transfer funds electronically. An overdraft occurs if account funds are insufficient to cover the check.
Step-by-step explanation:
Invoices and bills are formal written requests for payment issued by a seller to a buyer for goods or services provided. They typically list details such as quantities, descriptions, prices, and total amount due. To pay for these goods and services, checks are often used as a method of payment. When a buyer writes a check, the store or seller deposits the check into their bank account, whereby the funds are electronically transferred from the buyer's bank account to the seller's account. If there aren't sufficient funds in the buyer's account, this can lead to an overdraft, which is when the account balance goes below zero because the bank has covered the amount requested by the check.
Money, while not an end in itself, functions as a medium of exchange, widely accepted in the transaction of goods and services. Financial transactions often occur electronically in a modern economy, utilizing the same principles of demand and supply that govern markets. Political pressures can sometimes lead to discussions about setting price ceilings on financial products, such as interest rates on credit cards. Some of these pressures arise due to the significant amount of money made from interest payments and fees on credit cards.