BUSN 1100 Chapter Notes - Chapter 18: Bitcoin, Money Market Fund, Janet Yellen

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1100
• Professor: Crittenden William

Document Summary

Barter a system of exchange where goods and services are directly exchanged for other goods and services (no money involved) Two firms must need each other"s products/services at the same time. The product/services should be roughly the same worth. Money is: a medium of exchange, a measure of value, a store of value of banking is when the bank uses a certain amount of its money. Bitcoin digital asset (form of currency), with no central regulating authority (no government) but as long as people are using and exchanging it it works. Fractional reserve system supply to borrow to companies and invest in the market so that they can multiply their customers" money, however, they always leave a safe amount, a reserve, to prevent any major collapses. Money multiplier effect is the process of banks keeping reserves and using the remaining funds to synonym for deposit expansion, calculated by.