ACT 3030 Lecture Notes - Lecture 8: Capital Adequacy Ratio, European Central Bank, Nominal Interest Rate
Document Summary
A currency where notes are fully backed and redeemable in an equivalent amount of gold is often called the gold standard. Barter is the direct transfer of goods/services for other goods/services. Money is defined as anything that is generally accepted by people in exchange for goods and services or repayment on debt. Is money that must be accepted if offered as payment for a purchase or settlement of a debt. Are those actions by the ecb that influence money supply interest rates the availability of credit the value of currency. Commercial banks are institutes that provide deposit and lending services to personal consumers and businesses. The plr is the amount of money with respect to short-term deposits that the central bank requires commercial banks to keep in cash form. M1 = current circulation & current bank balances. M2 = current circulation & current bank balances & deposit account balances.
