Ch4.2.3 money_answers (uploaded on Sept18)

Ch4.2.3 money_answers (uploaded on Sept18) - medium of...

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xamples oney and its Uses Examples- Money and its Uses ± Which of the following items is money? ± A visa credit card ² It can be used a medium of exchange, but it is not money, because money must eventually be used to settle the account. Thus, credit cards are called a money substitute. ± A share of HSBC stock ² It is not money. Although it is a store of value, is not a medium of exchange nor a unit of it is not a medium of exchange nor a unit of account. 5
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xamples oney and its Uses Examples- Money and its Uses ± A well-known painting ² A painting is not money, although it can be converted into money by selling it (like most goods). It is a store of value, but it is neither a edium of exchange nor a unit of account
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Unformatted text preview: medium of exchange nor a unit of account. ± Currency-Notes hey are money ² They are money 6 xamples oney and its Uses Examples- Money and its Uses ± Checkable deposits ² Checking deposits are money because they can be transferred from one person to another by riting a check writing a check. 7 Notes on Flow and Stock Variables ± Is it possible for someone to have zero income and a large amount of wealth? ± Yes. An individual could have saved in arlier periods and accumulated a large earlier periods and accumulated a large amount of wealth. Although her income day is zero she could have a large today is zero, she could have a large amount of wealth. 13...
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This note was uploaded on 02/19/2011 for the course ECON 1021 taught by Professor Kokwanwai during the Fall '08 term at CUHK.

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Ch4.2.3 money_answers (uploaded on Sept18) - medium of...

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