memorandum

to: Jack cook

from: Liying wu

subject: Article review 2

date: 1/10/2005

Source Citation:

Anderson, H. (2001, February). Money and the Internet: a strange new relationship. IETT

Journal, 34(2), 74-76. Retrieved January 1, 2005, from IEEE Xplore Database.

Summary:

The article focuses on the impact of electronic money and Internet on the traditional banking industry and governmental monetary policies. The author explains how electronic money will change the power balance between financial institutions, retailers and consumers. He also explains about how electronic money can also hobble governments because it will be able to undercut their ability to control money flows with monetary policies. The author also advises that every industry should be aware of electronic commerce trends and prepare themselves for these changes.

Research Questions:

1. How Electronic money and Internet will change our world?

Outline Ideas:

1. The structure and function of a traditional bank

2. The new structure and function of a Cyberspace bank

3. Where and when does this transaction start?

4. What does a traditional bank need to do to prepare for this emerging technology?

Direct Quotes & Paraphrases:

1. “A bank today needs no branches, no employees, and perhaps no ATMs --- just a series of computers with connectors to the world. Such a bank would not issue checks, but it would dispense information, lend money and move data.” (Anderson, 75)