ECN 204 Study Guide - Demand Deposit, Money Supply, Money Multiplier
24 Apr 2011
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Chapter 12 money, banking, and money creation. medium of exchange we use it for exchange: money substitutes for barter, which require a double coincidence of wants. (i may want what you produce but you may not want to exchange for what i have) measure of value measures the value of goods and services. store of value can hold wealth in money. currency: coins and paper money: token money, bank of canada notes. demand deposits: chequing account: about of m i. Institutions that offer demand deposits: chartered banks are the primary depository institutions. Two qualifications: currency held by the bank of canada and chartered banks is excluded from. m1 + near monies: near monies are highly liquid financial assets that do not directly function as a medium of exchange but can be readily converted into currency.
