ECON 101 Lecture 10: ECON 101 L10

32 views5 pages
28 Mar 2017
School
Department
Course
Professor

Document Summary

W/out money, trade would require barter: exchange of one good or service for another. Every transaction would require a double coincidence of wants: unlikely occurrence that two people each have a good the other wants. Most people would have to spend time searching for others to trade with huge waste of resources. This searching is unnecessary with money: the set of assets that people regularly use to buy goods and services from other people. Medium of exchange: an item buyers give to sellers when they want to purchase goods and services. Unit of account: yardstick people use to post prices and record debts. Store of value: an item people can use to transfer purchasing power from the present to the future. Commodity money: takes the form of commodity with intrinsic value: ex: gold coins, cigarettes in pow camps. Fiat money: money without intrinsic value, used as money because of government decree: ex: us dollar.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions