ECON 3K03 Lecture Notes - Lecture 3: Credit Union, Life Insurance, Horse Length
8 Feb 2015
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Document Summary
The economics of money, banking, and financial markets. Learning objectives: describe the meaning of the word money, distinguish among the three primary functions of. Illustrate how information technology has paved the way for: explain money measurement matters. Meaning of money: what is it, money (or the money supply ): anything that is generally accepted in payment for goods or services or in the repayment of debts, a broad definition. Meaning of money (cont"d: money (a stock concept) is different from: Wealth: the total collection of pieces of property that serve to store value. Income: flow of earnings per unit of time, a flow concept. Functions of money: medium of exchange: medium of exchange: Eliminates the trouble of finding a double coincidence of needs (reduces transaction costs) Promotes specialization: a medium of exchange must. Functions of money: unit of account: unit of account: Used to measure value in the economy. Functions of money: store of value: store of value:
