ECON 202 Lecture Notes - Lecture 5: Open Market Operation, Money Multiplier, Capital Requirement
Document Summary
Money is the set of assets in an economy that people regularly use to buy goods and services from other people. Commodity money is in the form of a commodity with intrinsic value (examples include gold coins, cigarettes in pow camps) Fiat money is money without intrinsic value, used as money because of government decree (the u. s. dollar is an example) M1: currency, demand deposits, traveler"s checks, and other checkable deposits. M2: everything in m1 plus savings deposits, small time deposits, money market mutual funds, and a few minor categories. Percent change at seasonally adjusted annual rates m1 m2. 3 months from aug. 2015 to nov. 2015. 6 months from may 2015 to nov. 2015. 12 months from nov. 2014 to nov. 2015. Seasonally adjusted m2 is constructed by summing savings deposits, small-denomination time deposits, and retail money funds, each seasonally adjusted separately, and adding this result to seasonally adjusted m1.