ECON 1BB3 Lecture Notes - Lecture 16: Debit Card, Commodity Money

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Gang Wu

Document Summary

Is my mastercard an asset: money: an asset regularly used to buy goods & services, 3 functions, medium of exchange, unit of account, store of value, use of credit card is a method of deferring payment, liquidity: ease of which an asset can be converted into the economy"s medium of exchange, prices increase = decrease in value of money, commodity vs. fiat money, commodity money: money that takes the form of a commodity with intrinsic (something that has dual values) value, fiat money: established as by government degree, with no intrinsic value, money in canada, m = c + d.