UGBA 10 Lecture Notes - Lecture 5: Mutual Savings Bank, Pension Fund, Precious Metal

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

An object that is portable, divisible, durable, and stable that serves as a medium of exchange, a store of value, and a measure of worth. Barter brings up coincidence of wants" problem. Tally stick/beads or written records of debts. Records may be denominated in cows or grain. Money supply: how much money" is in circulation. M-1: measure of the money supply that includes only the most liquid (spendable) forms of money. Demand deposit order instructing a bank to pay a given sum to a specified payee. Bank account funds, owned by the depositor, that may be withdrawn at any time by check or cash. M-2: measure of the money supply that includes all the components of m-1 plus the forms of money that can be easily converted into spendable forms. Time deposit: bank funds that have a fixed term of time to maturity and cannot be withdrawn earlier or transferred by check.