Economics 1022A/B Chapter Notes -Credit Union, Mortgage Loan, Payments Canada

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ECON 1022A/B Full Course Notes
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ECON 1022A/B Full Course Notes
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Document Summary

Chapter 24 money, the price level, and inflation. Money is any commodity or token that is generally acceptable as a means of payment. A means of payment is a method of settling a debt: when a payment has been made, there is no remaining obligation between the parties to a transaction. Money serves three other functions: medium of exchange, unit of account, store of value. A medium of exchange is any object that is generally accepted in exchange for goods and services. Without it, goods and services must be exchanged directly for other goods and services an exchange called barter: a barter requires a double coincidence of wants, which rarely occurs. A unit of account is an agreed measure for stating the prices of goods and services. Money is a store of value in the sense that is can be held and exchanged later for goods and services.