ACT 2300 Lecture Notes - Lecture 10: Savings Account, Transaction Account, Debit Card
Document Summary
Set 10 study of the behavior of the economy as a whole and how major economic sectors, such as industry and government, interact. Money anything that people will accept in exchange for goods and services. 3 functions of money: medium of exchange 2. Medium of exchange a means through which goods and services can be exchanged. Barter the exchange of goods and services without using money. Standard of value determines the economic worth in the exchange process. Store of value something that holds its value over time. Inflation a sustained rise in the general level of prices. 4 physical properties of money: durability 2. Should be durable or study enough to last through many transactions. Should be divisible so that change can be made. Uniformity having features and markings to make it recognizable. 3 economic properties of money: stability of value 2. Purchasing power or value should be relatively stable. Scarcity must be scarce to have any value.
