ECON102 Chapter Notes - Chapter 24: Economic Equilibrium, Reserve Requirement, Excess Reserves

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Nafeez Fatima

Document Summary

Chapter 24: money, the price level, and inflation. Any commodity or token that is generally acceptable as a means of payment. Means of payment: a method of settling debt. Any object that is generally accepted in exchange for goods and services. Barter: goods and services exchanged directly for other goods and services. Requires a double coincidence of wants - a situation that rarely occurs. Overcomes the need for a double coincidence of wants. An agreed measure for stating the prices of goods and services. Can be held and exchanged later for goods and services. The more stable the value of a commodity or token, the better it can act as a store of value and the more useful it is as money. The notes and coins held by individuals and businesses. Deposits at banks and other depository institutions. Held at banks and other depository institutions. The owners of the deposits can use them to make payments.