Economics 1022A/B Lecture Notes - Lecture 15: Barter, Mortgage Loan, None Of The Above
ECON 1022A/B verified notes
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Document Summary
Money is any commodity or token that is generally acceptable as a means of payment. A means of payment is a method of settling a debt. A medium of exchange is an object that is generally accepted in exchange for goods and services. In the absence of money, people would need to exchange goods and services directly, which is called barter. Barter requires a double coincidence of wants, which is rare, so barter is costly. A unit of account is an agreed measure for stating the prices of goods and services. As a store of value, money can be held for a time and later exchanged for goods and services. Currency is the notes and coins held by individuals and businesses. The two main official measures of money in canada are m1 and m2. M1 consists of currency held by individuals and businesses plus cheatable deposits owned by individuals and businesses.