(BBA)CH3 Money - Chapter Three What is Money Meaning of...

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    Chapter Three What is Money?
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    Meaning of Money (p.53) Money (or the "money supply"): anything that is generally accepted in payment for goods or services or in the repayment of debts.
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    Functions of Money (P.54) 1. Medium of Exchange it is used to pay for goods and services. 2. Unit of Account it is used to measure value in the economy. 3. Store of Value it is used to save purchasing power from the time income is received until time it is spent.
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    Medium of Exchange (p.54) Evolution of Money: Commodity Money Metal  Money Credit  Money E-Money 1.Grains 2.Coconut 3.Cow 4.Horse 5.Leather 6.Horn 7.Shell 1.Gold 2.Siliver 3.Cooper 4.Iron 1.Paper Money 2.Deposits 1.Bank Card 2.Credit Card 3.Debit Card 4.Smart Card 5.E-Cash 6.E-Check
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    What can be used as Money? (p.55) 1. Easily Standardized 2. Widely Accepted 3. Be Divisible 4. Easy to Carry 5. Not Deteriorate Quickly
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    Unit of Account (p.55)   Woods Rice A Book A set of TV $12000 $10 $100 $5000 A Notebook An Apple Barter
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    Store of Value (P.56) Source: Huang, Z.T.(2005) Non-monetary Assets Wealth Currency Deposits Monetary Assets Equity Securities Non-Financial Assets Debts Securities Financial Assets
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