ECN 204 Lecture Notes - Lecture 10: Fractional-Reserve Banking, Overnight Rate, Foreign Exchange Market
Document Summary
Readings: chapters 10 and 11 (please read the related topics from other introductory level of macroeconomics textbooks for your own benefits). You have to make your own note from lecture. The 2 kinds of money: commodity money: takes the form of a commodity with intrinsic value. Examples: gold coins, cigarettes in pow camps: fiat money: money without intrinsic value, used as money because of govt decree. Currency in circulation: the paper bills and coins in the hands of the (non-bank) public. Demand deposits: balances in bank accounts that depositors can access on demand by writing a cheque or using a debit card. Two measures of the money stock for the canadian economy. The structure of the bank of canada: managed by a board of directors, composed of the governor, the senior deputy governor, and. Four primary functions of the bank of canada.
