ADMI 202 Study Guide - Final Guide: Financial Regulation, Commercial Paper, Trial Balance
16 Dec 2016
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Understanding money and banking 298 - 319. Money: any portable (light and easy to handle), divisible (quarters, dimes, nickels), durable, and stable object generally accepted by people as payment for goods and services. Without money: store of value: money can be used for future purchases and therefor (cid:498)stores(cid:499) value, unit of account: $ lets us measure the relative values of goods and services. M-1: only the most liquid forms of money i. e. currency, cheque, demand deposits ($ in chequing accounts) Credit cards: money substitute; they serve as a temporary medium of exchange but are not of value. Financial institutions: their main function is to facilitate the flow of money from sectors w/ surplus to those with deficits. Changes to financial institutions: deregulation: has allowed banks to shift away from historical role as intermediaries between depositors and borrowers. They offer chequing and savings accounts, make loans and provide other services to their customers.
