Titlepageweek5ndivpaperECO212

- Federal Reserve Paper 1 Running head Federal Reserve Federal Reserve Paper My Name ECO 212 Professor Name Federal Reserve Paper 2 Money is the

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Federal Reserve Paper Running head: Federal Reserve Federal Reserve Paper My Name ECO 212 Anymonth 10, 2010 Professor Name 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Federal Reserve Paper Money is the medium of exchange accepted in modern society as payment for goods and services. Money serves as the standard for measuring the relative worth of goods, services, and is the method the present economy uses to settle debt. The present way modern society interacts with money is different from the transactions of previous generations. The daily function of money facilitates the local, national, and global exchange of goods and services. Without a monetary system in place, trade must center on bartering or the direct transfer of one commodity for another. In an economy using a barter system, individuals possessing goods or services to trade must find other individuals who want those goods and services, and have something acceptable to offer in exchange. Economy’s using currency as mediums of exchange avoid the time, and effort a barter economy requires for trade to happen efficiently. Developed industrial nations use a central banking system. A central banking system acts as a bank for bankers by issuing currency, regulating banks, and clearing payments. A country’s central bank is the primary lender for the government, and acts as the lender of last resort for banks in financial distress. In 1913 President Woodrow Wilson signed The Federal Reserve Act
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 01/24/2011.

Page1 / 5

- Federal Reserve Paper 1 Running head Federal Reserve Federal Reserve Paper My Name ECO 212 Professor Name Federal Reserve Paper 2 Money is the

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online