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Final

ECON 209 Study Guide - Final Guide: Barter, Money Supply, Interbank


Department
Economics
Course Code
ECON 209
Professor
Paul Dickinson
Study Guide
Final

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26
󰏫
Money
iamedium ofexchange return in goods and services
if there is no money people haveto do barter
doublecoincidenceof
wants unnecessary
when
moneyis used
Money must have arelatively stable value
Iif pricelevel is stable purchasingpoweris alsostable
2if pricelevel is highly variable purchasing
poweris also variable
usefulness of money as aStoreof value is undetermined
nnrnrnr
如果
物价
稳定购买
稳定所以
󰌃钱
意义
Fmoney is used in accounting not rely on physical existence for
thispurpose
hMetallic Money
metal coin Cupping thin slice
Gresham'sLaw Bad money drives Good moneyoutofcirculation
2Paper Money
like thedepositors receipts ofgoldsmiths
transfer receipts forpurchase_
transferringofpaperreceipts invention ofpapermoney
银票
issued by bank banknotes convertible ondemand
fictionally backed
Only central banksare allowed to issue currency
Fiat Money Today's Money
Backed XConvertible to anything X
Legal Ender decreed by government
SGenerally acceptable mediumof exchange
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purchasingpowerremains stable satisfactory storeofvalue
Ls satisfactory unit ofaccount
DepositMoney Money heldby the public in theformofdepositswith
commercial banks
Today banks issuing morepromisesto deposit than they have cash
reserves available to pay out
空头
票
u2
ModernBanking System
CentralBank banker to commercial banks and government
sole moneyissuing authority
Financiduemediae privateinstitutionserves thegeneral public
commercial Banks intermediary between lender
laverandborrowed
TheBank of Canada
keeps momentary policies freefrom day to day politicalinfluence
considerable autonomy Joint Responsibility
ultimate responsibility_
bankertothecommercialbanks
2banker to federal government
Regulate money supply
4support financial markets
Commercial Banks
It's aprivately owned profitSeeking institution that provides
avariety of financial services Such as accepting deposits from
customers and making loans and other investments
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