MGTA02H3 Study Guide - Financial Intermediary, Pension Fund, Financial Institution
1
MGTA02H3 Full Course Notes
Verified Note
1 document
Document Summary
Money: any object generally accepted by people as payment for goods and services. Portability: currency that is easily affected by deterioration or is too large or uncomfortable to be carried around is not the best kind of money. That is why currency is usually lightweight and easy to handle. Divisibility: currency should be easily divisible, and easily given out. Durability: currency must be able to able to retain its value for a long period of time. Stability: there must be a stoic demand for the currency. Inflation would result in less demand for consumption while deflation would result in too much demand. Medium of exchange: money is used as a way to buy or sell things. Without money, society would be bogged down in a system of barter. Stores of value: in the form of currency, money can be used for future purchases and therefore stores value.
