ECON 1P92 Lecture Notes - Commercial Bank, Time Deposit, Shortage

63 views4 pages
elizabethkandelaki and 39709 others unlocked
ECON 1P92 Full Course Notes
4
ECON 1P92 Full Course Notes
Verified Note
4 documents

Document Summary

Households keep a fixed fraction of their funds in cash. If c is the ratio of cash to deposits (c/d) that people want to maintain: change in deposits= (change in reserves)/(c+v) Total quantity of money in economy at any time. Consists of currency plus various types of deposits. Kinds of deposits: various definitions of the money supply, depending on types of deposits included. Assets that are a store of value. Readily converted into a medium of exchange (money) Term deposit: good store of value (earns interest, poor medium of exchange. Serve as a temporary medium of exchange. Not a store of value (i. e. credit card) Choice between keeping money or chequing accounts: depends on need for convenience vs. interest earnings. No perfect definition of money, near money, or a money substitute. New financial assets are continually being developed: serve some or all functions of money.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions