BUSN 102 Chapter Notes - Chapter 20: Demand Deposit, Openmarket, Troubled Asset Relief Program
14 Apr 2016
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Document Summary
Chapter 20 money, financial insituions, and the federal reserve. Money anything that people accept as payment for goods and services: in the past, money could be considered as salt, feathers, stones, tea, and horses. Barter direct trading of goods or services for other goods or services. Standards for a useful form of money: portability, divisibility, stability, durability, uniqueness. Money supply amount of money the federal reserve makes available for people to buy goods and services. Diferent ways to refer to the money supply (m-1, m-2, m-3) M-1: coins and paper bills, money that"s available by wriing checks (demand deposits and share drats, money held in traveler"s checks (money that can be accessed quickly) M-2: most commonly used deiniion of money, everything in m-1, money in savings accounts, money in money market accounts, mutual funds, ceriicates of deposit, generally money that takes more ime to obtain than coins and paper bills. M-3: m-2, big deposits like insituional money market funds.
