ECO 2115 Chapter Notes - Chapter 3: Cashless Society, Ecash, Money Supply

34 views4 pages

Document Summary

Mone(cid:468): an(cid:468)thin(cid:311) that is (cid:311)ene(cid:409)all(cid:468) a(cid:272)(cid:272)epted in pa(cid:468)ment (cid:310)o(cid:409) (cid:311)oods o(cid:409) se(cid:409)(cid:461)i(cid:272)es o(cid:409) in the (cid:409)epa(cid:468)ment o(cid:310) de(cid:271)ts. In(cid:272)ome: (cid:310)lo(cid:462) o(cid:310) ea(cid:409)nin(cid:311)s pe(cid:409) unit o(cid:310) time. Eliminates need (cid:310)o(cid:409) dou(cid:271)le (cid:272)oin(cid:272)iden(cid:272)e o(cid:310) (cid:462)ants. Allo(cid:462)s (cid:310)o(cid:409) spe(cid:272)ialization and di(cid:461)ision o(cid:310) la(cid:271)ou(cid:409) Units in (cid:462)hi(cid:272)h (cid:461)alue is denominated th(cid:409)ou(cid:311)hout the e(cid:272)onom(cid:468) Without a unit o(cid:310) a(cid:272)(cid:272)ount, (cid:462)e (cid:462)ould need to kno(cid:462) (cid:531)(cid:532) p(cid:409)i(cid:272)es to e(cid:467)(cid:272)han(cid:311)e one (cid:311)ood (cid:310)o(cid:409) anothe(cid:409) With a unit o(cid:310) a(cid:272)(cid:272)ount, (cid:462)e onl(cid:468) need (cid:528)(cid:527) p(cid:409)i(cid:272)es as e(cid:461)e(cid:409)(cid:468)thin(cid:311) (cid:462)ould (cid:271)e (cid:409)epo(cid:409)ted in dolla(cid:409)s. Othe(cid:409) assets also se(cid:409)(cid:461)e this (cid:310)un(cid:272)tion (cid:614)sto(cid:272)ks, (cid:271)onds, land, houses, a(cid:409)t, je(cid:462)el(cid:409)(cid:468), et(cid:272) (cid:615) Mone(cid:468) is the most li(cid:408)uid o(cid:310) all assets (cid:271)ut does not pa(cid:468) a (cid:409)etu(cid:409)n, so loses (cid:461)alue du(cid:409)in(cid:311) in(cid:310)lation. Mone(cid:468) is pa(cid:409)ti(cid:272)ula(cid:409)l(cid:468) poo(cid:409) sto(cid:409)e o(cid:310) (cid:461)alue du(cid:409)in(cid:311) pe(cid:409)iods o(cid:310) h(cid:468)pe(cid:409)in(cid:310)lation (cid:462)hen in(cid:310)lation e(cid:467)(cid:272)eeds (cid:532)(cid:527)% pe(cid:409) month. Pa(cid:468)ments s(cid:468)stem: method o(cid:310) (cid:272)ondu(cid:272)tin(cid:311) t(cid:409)ansa(cid:272)tions in the e(cid:272)onom(cid:468) Mone(cid:468) made o(cid:310) p(cid:409)e(cid:272)ious metals (cid:614)(cid:311)old, sil(cid:461)e(cid:409)(cid:615) Pape(cid:409) mone(cid:468) de(cid:272)(cid:409)eed (cid:271)(cid:468) (cid:311)o(cid:461)e(cid:409)nments as le(cid:311)al tende(cid:409)

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents