LectureNote3

LectureNote3 - the economy • Store of Value—used to...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
LECTURE THREE Meaning and Functions of Money ECONOMICS 209 Professor Kevin Huang Vanderbilt University
Background image of page 1

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

View Full Document Right Arrow Icon
3-1 Meaning of Money Money (money supply)—anything that is generally accepted in payment for goods or services or in the repayment of debts Wealth—the total collection of pieces of property that serve to store value Income—flow of earnings per unit of time
Background image of page 2
3-2 Functions of Money Medium of Exchange—promotes economic efficiency by minimizing the time spent in exchanging goods and services ± Must be easily standardized ± Must be widely accepted ± Must be divisible ± Must be easy to carry ± Must not deteriorate quickly Unit of Account—used to measure value in
Background image of page 3

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

View Full Document Right Arrow Icon
Background image of page 4
Background image of page 5

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

View Full Document Right Arrow Icon
Background image of page 6
Background image of page 7

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

View Full Document Right Arrow Icon
Background image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the economy • Store of Value—used to save purchasing power; most liquid of all assets but loses value during inflation 3-3 Evolution of the Payments System • Commodity Money • Fiat Money • Checks • Electronic Payment • E-Money 3-4 3-5 How Reliable are the Money Data? • Revisions are issued because: ± Small depository institutions report infrequently ± Adjustments must be made for seasonal variation • We probably should not pay much attention to short-run movements in the money supply numbers, but should be concerned only with longer-run movements 3-6 3-7...
View Full Document

{[ snackBarMessage ]}

Page1 / 8

LectureNote3 - the economy • Store of Value—used to...

This preview shows document pages 1 - 8. Sign up to view the full document.

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