Unformatted text preview: US Money 2011 FIAT MONEY 25% 1. Coin 2. Paper currency NON-FIAT 3. Checking account balance at banks( demand deposits) paper checks, electronic funds transfer(EFT) NEAR MONEY : financial assets that are not generally accepted as a medium of exchange but are valuable NEAR MONEY 1. Earn interest and or appreciate in value EXAMPLES: 1. Saving account 2. Certificate of deposit 3. U.S. treasury bills, notes, bonds 4. Municipal bonds 5. Corporate stocks 6. Real estate 7. Gold 8. Diamonds “ Money Supply” M1=All media of exchange M2= m1 +time+ saving deposit M3= M2+ corporate depreciation + financial instruments...
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- Fall '11
- Fiat Money, generally accepted medium, Karina Santana, AKA double coincidence