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Unformatted text preview: er Money to Deposits
Currency: money in its physical form; coin and paper money. Checking deposits: accounts at a financial institution on which checks can be written; also called checkable deposits. Measures of the Money Supply
Money supply: the sum of currency (coin and paper money) and deposits at banks. Different Measures of the Money Supply M1 =currency plus checking deposits and traveler's checks M2 =a broader measure of money that includes M1 plus savings deposits, time deposits and certain accounts on which check writing is very limited Measures of the Money Supply
Savings deposit: a deposit that pays interest and from which funds can normally be easily withdrawn at any time. Time deposit: a deposit that pays interest and requires the depositor to keep the money at the bank for a certain period of time or else lose the interest. Measures of the Money Supply Cu...
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This note was uploaded on 06/01/2010 for the course ECONOMICS STA2012 taught by Professor Fan during the Spring '10 term at A.T. Still University.
- Spring '10