01:220:301 Lecture Notes - Lecture 3: Mutual Fund, Money Supply, Cashless Society
Document Summary
Money (or the money supply ): anything that is generally accepted in payment for goods or services or in the repayment of debts. Wealth: the total collection of pieces of property that serve to store value. Income: flow of earnings per unit of time. (a flow concept) Eliminates the trouble of finding a double coincidence of needs (reduces transaction costs). Used to measure value in the economy. Used to save purchasing power over time. Money is the most liquid of all assets but loses value during inflation. Commodity ( ) money: valuable, easily standardized and divisible commodities. Evolution of the payments system (e. g. precious metals, cigarettes). Fiat ( ) money: paper money decreed by governments as legal tender. Checks: an instruction to your bank to transfer money from your account. Predictions of a cashless society have been around for decades, but they have not come to. Fyi are we headed for a cashless society? fruition.
