PSYC 3420 Lecture : Econ 1010

• School: York University
• Department: Psychology
• Course: PSYC 3420
• Professor: Irwin Silverman

Document Summary

What is money: money is any commodity or token that is generally acceptable as a means of payment, means of payment is a method of settling debt, includes medium of exchange, unit of account and store of value, medium of exchange: is any object that is generally accepted in exchange for goods and services, barter requires a double coincidences of wants, this rarely occurs, this is overcome by the medium of exchange, unit of account: is an agreed measure for stating the prices of goods and services, store of value: it can be held and exchanged later for goods and services, a house and care can also have store of value, the more stable the value of commodity or token, the better it can act as a store of value, for money to be useful as a store of value it requires a low inflation rate.