Lecture What Is Money?. Chapters 3. Meaning of Money. Money - anything that is generally accepted in payment for goods or services or in the repayment of debts. A stock concept. It is an asset that can be used to make transactions.
What Is Money?
cornCoincidence of Wants
1) Medium of Exchange:
(2) Unit of Account:
(3) Store of Value:
M1 (most liquid assets)
M1 = currency + traveler’s checks + demand deposits
+ other checkable deposits.
http://www.federalreserve.gov/releases/h6/current/h6.htm Functions – Hyperinflation Example
Note change after early 1980s
– major innovation was the introduction of the money market mutual funds.