Economics 1022A/B Chapter Notes - Chapter 24: United States Treasury Security, Debit Card, Opportunity Cost

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Bruce Hammond

Document Summary

Chapter 24: money, the price level, and inflation. What is money: money is any commodity or token that is generally acceptable as a means of payment, means of payment is a method of settling a debt. When a payment has been made, there is no remaining obligation between the parties to a transaction: money serves 3 other functions: medium of exchange, unit of account & store of value. Store of value: money in the sense that it can be held and exchanged later for goods and services. Liquidity is the property of being easily convertible into a means of payment without loss in value. Depository institutions: depository institution is a financial firm that takes deposits from households and firms- these deposits are components of m1 and m2. Types of depository institutions: chartered banks. Companies act of 1991: these institutions receive deposits, make loans, and act as trustee for pension funds and for estates.