Economics 1022A/B Lecture Notes - Lecture 5: Mortgage Loan, Bank Reserves, Deposit Account

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Jeannie Gillmore

Document Summary

Chapter 24 money, the price level, and inflation. Any commodity or token that is generally acceptable as the means of payment. When payment has been made, there is no remaining obligation between the parties to a transaction. A medium of exchange is any object that is generally acceptable in exchange for goods and services. Without money, it would be necessary to exchange goods and services directly for other goods and services an exchange called barter. A unit of account is an agreed measure for stating the prices of goods and services. In the absence of a standardized unit of account, keeping track of prices and comparing prices would be difficult. A store of value is any commodity or token that can be held and exchanged later for goods and services. The more stable the value of a commodity or token, the better it can act as a store of value and the more useful it is as money.