ECON1132 Lecture Notes - Lecture 8: Commercial Bank, Savings Account, Aggregate Demand
24 Feb 2014
School
Department
Course
Professor
Document Summary
Lecture 8 money: meaning of and demand for money. It is time to turn to money, interest rates, banking, and monetary policy as pursued through a central bank, in this country the fed. We all have a sense of this--dollar bills in the u. s. , or euros in. France, or yen in japan--but let"s be a bit more precise. By money, in economics, we mean anything readily accepted as a means of payment. It may be some commodity, such as gold or silver, or paper, or even an accounting entry. Historically its most common form has been gold and silver, but olive oil, wampum, and cigarettes have also served as money. 3) finally, money serves as a unit of account--a basis for comparing apples and oranges--for keeping records as in total sales for a firm--for recording debts and collecting taxes--for measuring gdp and charitable giving.
