ECN 204 Lecture Notes - Lecture 8: Excess Reserves, Economic Equilibrium, Opportunity Cost
Document Summary
Week 8 lecture chapter 24 money, the price level and inflation. What is money: money is any commodity of token that is generally acceptable as a means of payment, means of payment is a method of settling a debt, money has three other functions. Medium of exchange, unit of account and store of value. Medium of exchange: an object that is generally accepted in exchange for goods and services. In the absence of money, people would need to exchange g/s directly (barter: barter requires a double coincidence of wants, which is rare, so barter is costly. Unit of account: an agreed measure for stating the prices of goods and services. Store of value: money can be held for a time and later exchanged for goods and services. Money in canada today: money in canada consists of. Deposits at banks and other depository institutions: currency is the notes and coins held by individuals and businesses.
