ECON 2010 Lecture Notes - Savings Account, Open Market Operation, Money Market Fund
Document Summary
Assets that people are generally willing to accept in exchange for goods & services or for. I. payment of debts: asset, barter & the invention of money, money. Anything of value owned by a person or firm: commodity money, barter economies meets the criteria for a medium of exchange. services; major shortcomings, double coincidence of wants other wants. May have to trade a few times: the functions of money. A good used as money that also has value independent of its use as money; Economies where goods & services are traded directly for other goods & Five criteria make a good suitable to use as a medium of exchange: the good must be acceptable to (that is, usable by) most people. ii. iii. iv. It should be of standardized quality so that any two units are identical. It should be durable so that value is not lost by spoilage.