ECON 105 Lecture 8: CHP27

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Stephen Choi

Document Summary

Medium of exchange: anything that is generally _____________________ in return for goods and services sold. If there were no money, goods would have to be exchanged in a system of. Barter is very inefficient due to the double coincidence of wants. The double coincidence of wants is unnecessary when a medium of exchange is used. Money is a convenient means of storing ________________________. Without high inflation, money retains its real value. Paper money or coinage that is neither backed by nor convertible into anything else but is decreed by the ___________________ to be accepted as legal tender. Money held as deposits with commercial banks and other financial institutions is called _______________ money. Bank deposits are an important part of the deposit creation. As in the past, banks created money by issuing more promises to pay (deposits) cause of. Money supply does not necessarily mean printing out new paper bills! Chapter 27 fall 2013: the canadian banking system.