ECON 2002.01 Chapter Notes - Chapter 7: Bank Reserves, Money Market Account, Mexican Federal Highway 2

• School: Ohio State University
• Department: Economics
• Course: ECON 2002.01
• Professor: Darcy Hartman

Document Summary

Money - assets people are generally willing to accept in exchange for goods and services or for payment of debt i. Without money, must rely on barter system g/s traded directly. Asset - anything of value owned by a person or firm. Commodity money - good used as money w/ value independent of its use as money i. ii. Medium of exchange - sellers willing to accept it in exchange for g/s. Unit of account - each good has a price in terms of money. Store of value - holds its value and can be kept easily. Liquid - can be quickly used or converted to medium of exchange. Standard of deferred payment - can facilitate exchange over time i. What makes it suitable? i. ii. iii. iv. v. Standardized quality - don"t have to judge value. Valuable relative to its weight - easily transported. Federal reserve is central bank of the us.