ECON-1007EL Chapter Notes - Chapter 9: Canada Deposit Insurance Corporation, Overnight Rate, Quantitative Easing
12 Mar 2017
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To the economist, money is any asset that can be used as a means of payment for purchases and settling debts. Fiat money an asset that has no (or almost no) intrinsic value or usefulness, such as paper currency, that is generally accepted as a means of payment for purchases and to settle debts. Its value arises from its widespread acceptance as a means of making purchases and settling debts. Money has 3 principal uses: medium of exchange. This is perhaps money"s most crucial function. Money serves as a medium of exchange when it is used to purchase goods and services, such as when you pay cash for a newspaper or write a cheque to cover your utilities bill. Unit of account a basic measure of economic value. In canada, virtually all prices, including the price of labour and of financial assets, such as shares in stock, are expressed in dollars.
