ECON 2010 Chapter : Chapter 11
Document Summary
Final exam: u. s. central bank: the fed. *federal reserve bank- the fed ; u. s. central bank whole liabilities serve as cash in the united states. *bank- financial institution whose primary function is accepting deposits for, and lending money to, individuals and firms: functions of money, serves as medium of exchange, serves as unit of account, serves as store wealth, m1. *m1- consists of currency in hands of public, checking account balances, and traveler"s checks: m2. *financial assets- assets such as stocks or bonds, whose benefit to the owner depends on the issuer of the asset meeting certain obligations. *interest rates- prices that are charged or paid for use of a financial asset; key variables in financial sector. *money- highly liquid financial asset that is generally accepted in exchange for other goods, is used as reference in valuing other goods, and can be stored as wealth. Alternative measures of money: banks and creation of money.
