CHAPTER 31OUTLINE - Economics Chapter 31 Outline The...

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Economics Chapter 31 Outline The Functions of Money Medium if Exchange—Usable for buying and selling goods and services. A convenient way of exchanges goods. Unit of Account—Monetary units (dollars) Store of Value—Money enables people to transfer purchasing power from the present to the future. (savings) Liquidity- The ease with which an asset can be converted quickly into the most widely accepted and easily spent form of money, cash, with little or no loss of purchasing power. The Components of the Money Supply M 1—Money Definition—currency in the hands of the public, all checkable deposits . Federal Reserve Notes—Issued by the Federal Reserve System (US Central bank)—Paper money issued by the Federal Reserve Banks. Token Money—Bills or coins for which the amount printed on the currency bears bo relationship to the value of the paper or metal embodied within it; for currency still circulating, money for which the face value exceed the commodity value. Checkable Deposits—Any deposit in a Commercial Bank or Thrift Institution against which a check may
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CHAPTER 31OUTLINE - Economics Chapter 31 Outline The...

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