Meaning and function of money
Download
1 / 4

Meaning and Function of Money - PowerPoint PPT Presentation


  • 215 Views
  • Uploaded on

Meaning and Function of Money. Economist’s Meaning of Money 1. Anything that is generally accepted in payment for goods and services 2. Not the same as wealth or income Functions of Money 1. Medium of exchange – mitigates transaction costs => efficiency 2. Unit of account (vs. Barter)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Meaning and Function of Money' - lorand


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Meaning and function of money
Meaning and Function of Money

Economist’s Meaning of Money

1. Anything that is generally accepted in payment for goods and services

2. Not the same as wealth or income

Functions of Money

1. Medium of exchange – mitigates transaction costs => efficiency

2. Unit of account (vs. Barter)

3. Store of value (liquidity, price fluctuations, hyperinflation)

Evolution of Payments System - Money spontaneously emerged in every society

1. Precious metals like gold and silver

2. Paper currency (fiat money)

3. Checks

4. Electronic means of payment

5. Electronic money: Debit cards, Stored-value cards, Smart cards, E-cash



Growth rates of fed s monetary aggregates
Growth Rates of Fed’s Monetary Aggregates


How reliable are the m2 money data data revisions
How Reliable are the M2 Money Data: Data Revisions


ad