ECON 1000 Study Guide - Midterm Guide: Deposit Account, Credit Union, Open Market Operation

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Andrea Podhorsky

Document Summary

Chapter 24: money, the price level, and inflation. Money any commodity or token that is generally acceptable as a means of payment. Means of payment a method of settling a debt: when a payment has been made, there is no remaining obligation between the parties to a transaction. Medium of exchange: a medium of exchange is any object that is generally accepted in exchange for goods and services. Unit of account: a unit of account is an agreed measure for stating the prices of goods and services. Store of value: money is a store of value in the sense that it can be held and exchanged later for goods and services. Inflation lowers the value of money and the values of other commodities and tokens that are used as money. To make money as useful as possible as a store of value, a low inflation rate is needed.