What is Money? zMoney is a medium of exchange zMoney is a unit of account zMoney is a store of value or wealth.

Slides:



Advertisements
Similar presentations
What is Money Ch 13.
Advertisements

Money and the Banking System
Money and Financial Institutions. In the monetary system goods and services are indirectly exchanged using money, which can then be exchanged for other.
10/22/20141 Money and Banking Chapter Outline The Functions of Money The Functions of Money The Components of Money Supply The Components of Money.
Our Money Supply Money consist of coins, paper money, demand (or checking) deposits, and checklike deposits (commonly called NOW – or negotiable order.
1 Chapter 18 Practice Quiz Tutorial Money and The Federal Reserve ©2004 South-Western.
13.1 WHAT IS MONEY? ● money Any items that are regularly used in economic transactions or exchanges and accepted by buyers and sellers.
MONEY: BASIC NOTION Samir K Mahajan.
25 MONEY, THE PRICE LEVEL, AND INFLATION © 2012 Pearson Addison-Wesley.
Activity 38 The mechanics of monetary policy. Baseline case Assets Liabilities The FED Treasury Securities Federal Reserve Notes Checkable deposits Loans.
Principles of Macroeconomics Supplement to Chapter 9 How Banks Create Money.
Money, Banking, and the Federal Reserve System
Monetary aggregates Checkable deposits Balance sheets Money creation Money multiplier Tools of the Fed.
1.Barter 2.What is money? 3.The functions of money 4.Commodity, representative, and fiat money 5.Financial intermediaries 6.The Federal Reserve System.
1.Barter 2.What is money? 3.The functions of money 4.Commodity, representative, and fiat money 5.Financial intermediaries 6.The Federal Reserve System.
Money and the Monetary System Outline The definition and functions of money Measuring the money supply Financial institutions The Federal Reserve system.
We just understood the equilibrium and transmission mechanisms of the goods market. Now we will analyze the money market…
Chapter 9 The Nature and Creation of Money Hossain: MSMC.
Lesson 9-1 Money. Defining Money The Functions of Money A medium of exchange is anything that is widely accepted as a means of payment. Money is anything.
Money Supply and other notions about Money! Amount of money in circulation is constantly changing. The amount depends on how much money is desired by.
1. WHAT IS MONEY? Learning Objectives 1.Define money and discuss its three basic functions. 2.Distinguish between commodity money and fiat money, giving.
AP Macroeconomics Unit 3 The Financial Sector Vocab: Ch. 31/32 Exam Dates: 3/27 and 3/28.
Money and Banking— Monetary Policy Chapter 13. Functions of Money  1. Medium of exchange—used for buying and selling g & s  2. Unit of account—prices.
Starter. Money and Banking What is Money? Functions of Money   1.medium of exchange 2. Store of value (hold wealth until ready to use) 3. Measure of.
Copyright McGraw-Hill/Irwin, 2005 Balance Sheet of a Commercial Bank Formation of a Commercial Bank Multiple Deposit Expansion Process The Monetary.
Money, Banking, and Financial Institutions 14 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Starter What is a union? Name three kinds of businesses. What is a stockholder? Why would someone choose to go on strike against their employer?
The Money Supply and the Banking System Outline: What counts as money? Measuring the money stock Financial intermediaries The typical bank balance sheet.
Chapter 14 Money and Our Banking System. Money is whatever people generally accept Functions of Money Medium of Exchange – payment for goods and services.
CHAPTER OUTLINE An Overview of Money What Is Money? Commodity and Fiat Monies Measuring the Supply of Money The Private Banking System How Banks Create.
Chapter 15 Multiple Deposit Creation and the Money Supply Process.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 2 Principles of Money.
ETP Economics 102 Jack Wu.  Money is the set of assets in an economy that people regularly use to buy goods and services from other people.
© OnlineTexts.com p. 1 Chapter 14 Econ104 Parks Money and Banking.
Copyright © 2010 Pearson Addison-Wesley. All rights reserved. Chapter 15 Money, Banking, and Central Banking.
Money and Banking Chapter 31 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 11 Money and Banking. Barter Economy Coincidence of wants Cumbersome Time-consuming Indivisible.
Money Objectives Describe the three uses for money
Do Now In a few sentences, describe the barter system. What are its advantages and disadvantages? If you had to function within a barter system, what would.
The Monetary System What is money? What are its main functions? Money is a commodity that is generally accepted as for payment for goods and services.
TM 13-1 Copyright © 1998 Addison Wesley Longman, Inc. What is Money? Money is any commodity or token that is generally acceptable as the means of payment.
Trade and Banking NCSCOS 8.08/8.09.
CHAPTER 30 Money, Banking, and the Federal Reserve System.
Money, Banking, and Central Banking. Copyright © 2008 Pearson Addison Wesley. All rights reserved Introduction Why is the Federal Reserve System.
Money and Banking— Monetary Policy Section 5 Modules
Money and Banking Chapter 10. Three Uses of Money Medium of Exchange – anything used to determine value during the exchange of goods and services. Unit.
Chapter 15: The Fed and Monetary Policy Chapter 15.1: The Federal Reserve System Chapter 15.2: Monetary Policy Chapter 15.3: Monetary Policy, Banking,
1. Who Creates Monetary Policy? 2. What are the 3 tools of Monetary Policy? 3. What would the Fed want to do to the money supply if there was high unemployment?
 What is Money?  Why do we need it?. Money = 1. Purchase of goods and services 2. Personal worth: measurement of wealth and assets.
Rohith Jayakumar. -The unemployment rate is the percentage of those who would like to work who do not have jobs. - The unemployment rate is not a measure.
Money and Banking The Federal Reserve and Monetary Policy.
What Is Money?  Serves ALL the following purposes:  Medium of exchange: accepted as payment for goods and services (and debts).  Store of value: can.
T-Account Notable Scenarios Bank makes new loans. Customer deposits cash into checking. Fed buys bonds from bank (bank’s t-account). Open market purchases.
How Banks Create Money Please listen to the audio as you work through the slides.
Alomar_111_201 Chapter 14: Money Creation. Alomar_111_202 How commercial banks can create checkable deposits and issue loans? By this, money is created!
J.A.SACCO.   Functions of the Fed 1) Supplies the economy with fiduciary currency 2) Provides a clearing mechanism for checks 3) Holds depository institutions.
Banking 10.2/3. Ajektivs The Hiztorye of Banks How u can put yer har erned mone inta bank.
The Demand and Supply of Money SmSm i% $$ demanded DmDm i% 1.
Chapter The Monetary System 16. The Meaning of Money Money – Set of assets in an economy – That people regularly use – To buy goods and services from.
Money and Banks. I. What is Money? Root of all evil; money is debt –And all that is good: how do you think Brangelina got to look like that? 1) Medium.
Chapter 14 Money and Banking.
Money Creation Chapter 32.
Chapter 31 Money and Banking.
Money and Banking Chapter 24.
The Banking System and the Money Supply
The Monetary System © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted.
21 The Monetary System.
13.1 WHAT IS MONEY? ● money Any items that are regularly used in economic transactions or exchanges and accepted by buyers and sellers.
29 The Monetary System.
The Demand and Supply of Money
Presentation transcript:

What is Money? zMoney is a medium of exchange zMoney is a unit of account zMoney is a store of value or wealth

 Liquidity refers to two properties of assets or stores of value, namely: The ready convertibility of the asset to generalized purchasing power. The comparative safety of the asset.  Money is the most liquid asset available under normal circumstances

Least liquid Most liquid Currency, checkable deposits Savings and time deposits Treasury bills, commercial paper Government and corporate bonds, equities Specialized equipment Ceramics, art, rugs, rare coins Farmland, commercial real estate Home equity

Depository institutions are required by law to hold a minimum fraction of their liabilities on account at the FED Legislation: Federal Reserve Act of 1913 DIDMCA of 1982

Banks create money when they credit the checking accounts of loan recipients. The ability of banks to make loans, and thereby expand the money supply, depends on their reserve position.

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.