UGBA 10 Chapter 3: UGBA CH3

• School: Berkeley
• Department: Business Administration, Undergraduate
• Course: UGBA 10
• Professor: Briginshaw John

Document Summary

Money: object that is portable, divisible, durable and stable and that serves as a medium of exchange, a store of value and a measure of worth. Barter economy: goods are exchanged directly for one another. Supply: how much money is in circulation. M-1: measure of the money supply that includes only the most liquid (spendable) forms of money. Currency (cash): issued by the government and widely used for small exchanges. Law requires creditors to accept cash in payment of debts. Check: an order instructing a bank to pay a given sum to a payee. Usually accepted because they valuable only to specified payees and can be exchanged for cash. Checking account (demand deposits): bank account funds, owned by the depositor, that may be withdrawn at any time on demand. M-2: measure of money supply that includes all components m-1 plus the forms of money that can be easily converted into spendable forms.