BUSN 70 Chapter Notes - Chapter 15: Individual Retirement Account, Debit Card, Primary Market
13 Oct 2017
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Document Summary
Is the study of how money is managed by individuals, companies, and governments. Currency - anything accepted in exchange for goods and services. Fiat money - paper money not readily convertible to a precious metal such as gold. If people don"t trust value of money, businesses will not accept it as payment, consumers would have to find other ways as payment. All items must be valued in comparable units - dimes for a piece of gum, quarters. Paper currency and metal coins capable of transferring vast purchasing power into. Money value declines during inflation, when economic conditions cause prices to. Instability destroys confidence in the nation"s money, also impacts other countries. Checking account (demand deposit), money stored in an account at a bank or other financial institution that can be withdrawn without advance notice. Some checking accounts earn interest, now (negotiable order of withdrawal) account. Saving accounts (time deposits) offered by most financial institutions.
