Ryan Fitts_BU204-10-_Unit_8_Homework

Ryan Fitts_BU204-10-_Unit_8_Homework - Ryan Fitts Course...

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Ryan Fitts Unit: 8 Jan 9, 2011 Key Terms – Definitions Fiat money “Mr. Greenspan once understood that a fiat money system represents nothing more than a sinister and evil form of hidden taxation. When the government can print money at will, it's morally identical to the counterfeiter who illegally prints currency. Fiat money polices especially hurt savers and those on fixed incomes, who find the value of their dollars steadily eroded by the Fed's printing presses.” (Dr. Ron Paul Sept 12, 2003) Fiat money is currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Most of the world’s paper money is fiat money. The dollar is fiat money and the value of the dollar has continued to drop in value because of the Federal Reserve policies and it is no longer backed by gold. M1 “M1 money stock is the “Narrow” money supply, which consists of: 1. currency outside the U.S. Treasury, Federal Reserve Banks and the value of depository institutions;
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2. traveler’s checks of nonbank issuers; 3. demand deposits; 4. Other Checkable Deposits (OCDs), which consist primary of negotiable
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Ryan Fitts_BU204-10-_Unit_8_Homework - Ryan Fitts Course...

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