MGEB06H3 Lecture 5: Week 5 chapter notes

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lavenderdonkey6

6 Dec 2010

School

UTSC

Department

Economics for Management Studies

Course

MGEB06H3

Professor

Jack Parkinson

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Document Summary

N money the stock of assets used for transactions. N money has three purposes: store of value, unit of account, and a medium of exchange. N medium of exchange the item widely accepted in transactions for goods and services; one of the functions of money. N monetary policy the central bank"s choice regarding the supply of money. N bank of canada the central bank of canada. Currency plus chartered bank deposits at the bank of canada. Sum of currency in circulation, demand deposits, and other chequing deposits at chartered banks. Sum of m1 plus personal savings deposits and non-personal notice deposits at chartered banks. Sum of m2 plus all deposits and shares at trust companies, mortgage loan companies, credit unions, and caisses populaires. Py); coupled with the assumption of stable velocity, an explanation of nominal expenditure called the quantity theory of money. N money (m) velocity (v) = price (p) transaction (t)

Related Questions

1. To say money is socially defined means that:

A) the money supply includes all public and private securities purchased by society.

B) whatever performs the functions of money extremely well is considered to be money.

C) society, acting through Congress, specifies what shall be included in the money supply.

D) money has been defined in a Constitutional amendment.

2. Money functions as:

A) a medium of exchange.

B) a store of value.

C) a unit of account.

D) all of these.

3. If you are estimating your total expenses for school next semester, you are using money primarily as:

A) a store of value.

B) an economic investment.

C) a unit of account.

D) a medium of exchange.

4. If you place a part of your summer earnings in a savings account, you are using money primarily as a:

A) medium of exchange.

B) store of value.

C) standard of value.

D) unit of account.

5. If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as:

A) a store of value.

B) a medium of exchange.

C) a unit of account.

D) an economic investment.

6. A $70 price tag on a sweater in a department store window is an example of money functioning as a:

A) standard of deferred payments.

B) medium of exchange.

C) unit of account.

D) store of value.

7. Stock market price quotations best exemplify money serving as a:

A) index of satisfaction.

B) store of value.

C) medium of exchange.

D) unit of account.

8. Purchasing common stock by writing a check best exemplifies money serving as a:

A) medium of exchange.

B) unit of account.

C) index of satisfaction.

D) store of value.

crimsonalligator541

Inflation reduces the ability of money to function as which one?

a. Medium of exchange.

b. Medium of value.

c. Unit of account.

d. Store of value.

plumherring234

If an economy used gold as money, its money would be

a.commodity money, but not fiat money.

b.fiat money, but not commodity money.

c.both fiat and commodity money.

d.functioning as a store of value and as a unit of account, but not as a medium of exchange

harlequinpug73

MGEB06H3 Lecture 5: Week 5 chapter notes

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