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Definition
| Network of institutions that brings together savers and investors |
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Term
| 5 Core Principles of Money and Banking |
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Definition
Time has Value
Risk requires compensation
Information is the basis for making decisions
Markets set prices and allocates resources
Stability improves welfare |
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Definition
| Asset that is generally accepted for the payment of goods and services and the repayment of debt |
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Definition
| Difference between assets and liability |
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| Money influences the economy via: |
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Definition
| Inflation, Interest Rates, and Output |
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Term
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Definition
Medium of Exchange
Store of Value
Unit of Account |
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Definition
Acceptable to Traders
Has standardized quality
Durable
Value relative to weight
Visible |
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Definition
| Can use it in transactions or you can use it (i.e. gold) |
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Definition
| Money because the government says it is and gives it worth |
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Definition
| matures in less than one year, typically does not have interest rates but face value |
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Definition
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