EconCh10 - Chapter 10 Barter The direct exchange of goods...

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Chapter 10 Barter – The direct exchange of goods and services for other goods and services. Medium of exchange, or means of payment – What sellers generally accept and buyers generally use to pay for goods and services. Store of value – An asset that can be used to transport purchasing power from one time period to another. Liquidity property of money – The property of money that makes it a good medium of exchange as well as a store of value: It is portable and readily accepted and thus easily exchanged for goods. Unit of account – A standard unit that provides a consistent way of quoting prices. Commodity monies – Items used as money that also have intrinsic value in some other use. Flats, or token, money – Items designed as money that are intrinsically worthless. Legal Tender – Money that a government has required to be accepted in settlement of debts. Currency debasement – The decrease in the value of money that occurs when its supply is increased rapidly. M1,
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This note was uploaded on 03/03/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).

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