ECON 20B Lecture Notes - Lecture 17: Fiat Money, Barter, Bitcoin
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Econ 20b - lecture 17 - the monetary system. Money - any commodity or token that is generally accepted as a means of payment. Money is something that can be recognized. Money can be divided up into small parts. Means of payment - method of settling a debt. Medium of exchange - a object that is generally accepted in return for goods and services. Without money, you would have to exchange goods and services directly for other goods and services an exchange called barter. A unit of account is an agreed-upon measure for stating the prices of goods and services. A store of value is any commodity or token that can be held and exchanged later for goods and services. The more stable the value of a commodity or token, the better it can act as a store of value and the more useful it is as money. Money in the world today is called fiat money.
