chapter 23 money and banking

chapter 23 money and banking - CHAPTER 23 Money and the...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 23 Money and the Banking System
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter Twenty-Three 2 of 14 Lecture Outline 1. Money a. Definition of money b. Three properties of money c. Measuring the money supply 2. Banks as financial intermediaries a. A bank’s balance sheet: assets and liabilities b. Reserves 3. How banks create money: the money multiplier at work FYR
Background image of page 2
Chapter Twenty-Three 3 of 14 What  Is  Money? Money is anything that is regularly used in economic transactions or exchanges and accepted by buyers and sellers. Liquidity : the property of being instantly convertible into a means of payment with little loss of value
Background image of page 3

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

View Full DocumentRight Arrow Icon
Chapter Twenty-Three 4 of 14 3 Properties of Money Medium of Exchange Any item that buyers give to sellers when they purchase goods and services (versus barter) Unit of Account A standard unit in which prices can be stated and the value of goods and services can be compared. Store of Value The property of money that it preserves value until it is used in exchange.
Background image of page 4
Depository Institutions Depository institutions make a profit from the spread between the interest rate they pay on
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/12/2012 for the course ECON EC1101 taught by Professor Ms during the Spring '08 term at National University of Singapore.

Page1 / 14

chapter 23 money and banking - CHAPTER 23 Money and the...

This preview shows document pages 1 - 6. Sign up to view the full document.

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