---
entity_slug: cash_accounts
evaluator: null
evaluated_at: '2026-02-23T04:42:13.082523'
overall_score: 4.6
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly describes a specific banking mechanism - credit
    lines that allow borrowing and repaying up to a limit without maintaining large
    cash reserves. It captures a distinct financial instrument rather than a vague
    concept, though it could be slightly more precise about the mechanics of how limits
    are determined.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This entity is directly grounded in Smith's text from Book II, Chapter
    2, where he specifically discusses Scottish banking innovations including cash
    accounts. Smith explicitly describes this system and its effects on merchant operations
    and capital efficiency.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: The "Exchange" domain is perfectly appropriate for cash accounts, as
    they represent a financial mechanism that facilitates trade and commerce. This
    banking innovation directly relates to how value and capital are exchanged and
    circulated in the economy.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: Cash accounts map well to S1 (primary operations) as they are operational
    tools that enable merchants to conduct business more efficiently. They also have
    some S2 relevance as coordination mechanisms that smooth capital flows and reduce
    oscillations in merchant liquidity.
- name: explanatory_value
  value: 5.0
  max_value: 5.0
  rationale: This entity provides significant explanatory power by illuminating how
    financial innovations can increase capital efficiency and enable larger-scale
    commerce. It demonstrates a concrete mechanism by which banking systems can amplify
    economic activity beyond what would be possible with purely cash-based transactions.
---

# Evaluation: Cash Accounts

## definition_precision — 4.0 / 5.0

The definition clearly describes a specific banking mechanism - credit lines that allow borrowing and repaying up to a limit without maintaining large cash reserves. It captures a distinct financial instrument rather than a vague concept, though it could be slightly more precise about the mechanics of how limits are determined.

## source_grounding — 5.0 / 5.0

This entity is directly grounded in Smith's text from Book II, Chapter 2, where he specifically discusses Scottish banking innovations including cash accounts. Smith explicitly describes this system and its effects on merchant operations and capital efficiency.

## domain_placement — 5.0 / 5.0

The "Exchange" domain is perfectly appropriate for cash accounts, as they represent a financial mechanism that facilitates trade and commerce. This banking innovation directly relates to how value and capital are exchanged and circulated in the economy.

## vsm_relevance — 4.0 / 5.0

Cash accounts map well to S1 (primary operations) as they are operational tools that enable merchants to conduct business more efficiently. They also have some S2 relevance as coordination mechanisms that smooth capital flows and reduce oscillations in merchant liquidity.

## explanatory_value — 5.0 / 5.0

This entity provides significant explanatory power by illuminating how financial innovations can increase capital efficiency and enable larger-scale commerce. It demonstrates a concrete mechanism by which banking systems can amplify economic activity beyond what would be possible with purely cash-based transactions.
