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United States (205,937)
Economics (70)
ECON 2035 (13)
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Chapter 2

Chapter 2 Money And Central Banks (got 93% on the test)

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ECON 2035
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Chapter 2IWhat is MoneyMoney class of assets that serves as an economys medium of exchangeMoney portion of our wealth a that is used and generally excepted for payment of goods and services oShe has a lot of moneyWealth savinginvestment cashstock how much money you have at any point in time A lot of incomea flow variable Function of Money 1Medium of exchangewhat actually changes hands 2Unit of accountprices of things 3Store of Value portion of our assetsThis note is legal tender for all debts public and privatewritten on 4Standard of the third paymentpaying off private debts 5Unilateral Transfer paying off public debts taxes court costs Medium of Exchange whatever people use to purchase goods and services oMoney on Demand Amount of wealth that people choose to hold in the form of money Money Vs BarteroBartersystem of exchange in which goods and services are traded directly with no money involvedoDouble coincidence of wants condition needed for barter each party to transaction must have something the other wants the Unit of Accountmeasure in which prices and salaries are quoted A Store of Value form in which wealth can be held IITypes of Money Commodity Money valuable good that serves as the medium of exchange oCoins oOrigins of Paper Money Fiat Moneymoney with no intrinsic value Alternatives to a National Currency Dollarizationuse of foreign currency often US dollars as moneyCurrency board institution that issues money backed
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