Chapter 2 - Chapter 2 Money is an asset that is generally...

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Money is an asset that is generally accepted as payment for goods and services or repayment of debt. 1.Means of payment Used in exchange for goods & services 2.Unit of account Used to quote prices 3.Store of value Used to move purchasing power into the future 2-1 Chapter 2
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Money: How We Pay for Things (I) Commodity Money: Objects with intrinsic value Fiat Money : Value comes from government decree (or fiat) Checks: Instructions to the bank to shifts funds from your account to that of the person or firm whose name is written in the “Pay to the Order of” line. 2-2
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Money: How We Pay for Things (II) Credit Cards Debit Cards Electronic Funds transfers especially automated clearing house (ACH transactions) Stored Value Cards E-Money 2-3
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Debit cards: Like a check Electronic message to your bank to transfer funds immediately Credit cards: Deferred payment Issuer makes payment for you You have to pay it back 2-4 Debit cards vs credit cards
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This note was uploaded on 02/12/2012 for the course ECON 101 taught by Professor Abrams during the Spring '11 term at Adams State University.

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Chapter 2 - Chapter 2 Money is an asset that is generally...

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