ECO100Y5 Chapter Notes - Chapter 24: Savings Account, Monetary Base, Bitcoin
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ECO100Y5 Full Course Notes
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Mo(cid:374)ey"s eco(cid:374)o(cid:373)ic fu(cid:374)ctio(cid:374)/creatio(cid:374), i(cid:374)terest rates/bo(cid:374)d prices, ti(cid:373)e value of mo(cid:374)ey. Anything that"s commonly used to buy & sell goods/services. Money is referred to as currency if it is the dominant circulating medium of exchange. Can you store it & use it later: bitcoin is not a valid store of value since its worth is extremely volatile over time. Something that is used as money that has value other than its use as money. Dollar bills can"t be used in anything other than its use of money, but cattle can. A government declares that something is money & the citizens use it as money. Basically, it"s money because the government says so. For example, the canadian government has defined the canadian dollar as legal tender (courts will enforce the settlement of any debt repaid with dollars). However, the dollar is valuable only because people believe it is valuable.
