ECON 1010 Lecture Notes - Lecture 7: Credit Union, Mortgage Loan, Barter
Document Summary
Econ1010- lecture 7- chapter 24- money, the price level, and inflation. Money is any commodity or token that is generally acceptable as a means of payment. A means of payment is a method of selling a debt. Money has three other functions: medium of exchange: accepted by both sellers and buyers, unit of account: quote prices in dollars and cents, store of value: store welth in the form of money. Money is an asset that can be used to transport purchasing power from one period to another. A medium of exchange is an object that is generally accepted in exchange for goods and services. A barter economy: an economy without money involves the direct exchange of goods and services for other goods and services, barter exchange requires the double coincidence of wants. A monetary economy: an economy with money. Individuals do not exchange goods and services directly for other goods and services: money eliminates the double coincidence of wants problem.
