June 23 - Money and Banking What Is Money vs. What Money Is...

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Money and Banking What Is Money vs. What Money Is A Little Accounting How Do Banks Work? Basics of Bank Accounting Fractional Reserve Banking Some Bank Accounting Exercises The Money Creation Process The Money Multiplier
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Functions of Money
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Functions of Money Medium of Exchange
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Functions of Money Medium of Exchange Store of Value
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Functions of Money Medium of Exchange Store of Value Unit of Account
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Liquidity Liquid Illiquid
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Liquidity Liquid Illiquid Cash
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Liquidity Liquid Illiquid Cash Chkg. Dep
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Time Deposits
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Stocks and Bonds Time Deposits
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Stocks and Bonds Real Estate Time Deposits
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Stocks and Bonds Real Estate Time Deposits Fine Art
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M1 Currency and Traveler’s Checks Cash in the hands of the public Checking Deposits Held at commercial banks, S & Ls, Savings Banks, and Credit Unions As of Feb. 1, 2010, M1 = $1.679 Trillion Measures of Money
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Stocks and Bonds Real Estate Time Deposits Fine Art M1
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M1 Currency and Traveler’s Checks Cash in the hands of the public Checking Deposits Held at commercial banks, S & Ls, Savings Banks, and Credit Unions As of Feb. 1, 2010, M1 = $1.7 Trillion M2 M1 Savings deposits Time deposits Money market mutual funds and other deposits As of Feb. 1, 2010, M2 = $8.5 Trillion Measures of Money
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Liquidity Liquid Illiquid Cash Chkg. Dep Savings Deposits Stocks and Bonds Real Estate Time Deposits Fine Art M1 M2
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What is not money? Checks Checks are not money, but checking deposits are Credit cards Credit cards merely allow you to take a short-term, unsecured loan Measures of Money
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Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L)
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000 Car $ 25,000
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000 Car $ 25
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000 Car $ 25,000 Stocks $100,000
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000 Car $ 25,000 Stocks $100,000 Mortgage $100,000
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) (= A – L) Home $250,000 Car $ 25,000 Stocks $100,000 Mortgage $100,000 Auto Loan $ 10,000
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Individual Balance Sheet Assets (A) Liabilities (L) Net Worth (NW) Home $250,000 Car $ 25,000 Stocks $100,000 Mortgage $100,000 Auto Loan $ 10,000 Credit Card $ 5,000
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This note was uploaded on 10/21/2010 for the course ECON 1530 taught by Professor Ohly during the Spring '10 term at Dartmouth.

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June 23 - Money and Banking What Is Money vs. What Money Is...

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