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Monetary system
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money
set of assets in an economy that people regularly use to buy goods and services
funtions of money:
medium of exchange- item that buyers give to sellers to purchase goods and services
store of value- item that people can use to transfer purchasing power from present to future
unit of account- yardstick people use to record debts and post prices
barter
the exchange of one good or service for another
commodity money
money that takes the form of a commodity with intrinsic value
fiat money
money without intrinsic value that is used as money because of government decree
intrinsic value
something has value even if it is not used as money
federal reserve
central bank of the US oversees the banking system and regulates amount of money in the economy also lender of last resort
liquidity
ease with which an asset can be converted into an economy's medium of exchange
m1
demand deposits, travelers checks, checkable deposits, currency
m2
saving deposits, small time deposits and money market funds, all m1 and few minor categories
Author
Anonymous
ID
3041
Card Set
Monetary system
Description
money
Updated
2009-12-14T04:42:01Z
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