ECON-002 Lecture Notes - Commodity Money, Bank Reserves, Savings Account
Document Summary
Money: any asset that can easily be used to purchase goods and services. Currency in circulation: cash held by the public. Checkable bank deposits: bank accounts on which people can write checks. The money supply is the total value of financial assets in the economy that are considered money. A store of value. something people accept as payment for goods and services. Money is a means of holding purchasing power over time. It enables people to save the money they earn today and use it to buy the goods and services they want tomorrow. A unit of account goods and services. Money provides a yardstick for measuring and comparing the values of a wide variety of. Money is being widely accepted way to value a debt; thereby allowing goods and services to be acquired now and paid for in the future. Commodity money: a good used as a medium of exchange that has intrinsic value in other uses.
