EC140 Chapter 26: Money and Banking
21
EC140 Full Course Notes
Verified Note
21 documents
Document Summary
It is easily recognized and can be divided into small units: gresha(cid:373)"s la(cid:449): theory that bad or debased money drives good or undebased money out of circulation, ex. Modern money: deposit money: deposit money: money held by the public in the form of deposits with commercial banks, ex. Money being held electronically at banks: options, withdraw cash from bank to make a transaction, writing cheques (transfer of funds to different accounts, electronic transfer of funds (ex. 26. 2 - the canadian banking system: central bank: a bank that acts as banker to the commercial banking system and often to the government as well. Canada buys them sometimes (sometimes sells: regulator of the money supply, printing money increases bank liabilities, supporter of financial markets, ex. During situations, the bank of canada tries to help by doing different things such as providing short-term loans to canadian banks.
