Академический Документы
Профессиональный Документы
Культура Документы
examples
money
what is accepted as payment income earnings during time period (year) wealth accumulated assets at pt. in time
examples
without money,
example
I have exam 2,
want to trade it for soda
You have to want the exam & be willing to give up soda AND I have to want the soda & be willing to give up exam
example
Historically, the dollar has been a good store of value 70% of U.S. currency is held outside the U.S but if $ continues to fall, this could change
commodity money
has its own value as a good -- gold & silver coins
fiat money
-- no value other than fact that its accepted in exchange for goods and services
Money aggregates
amount of cash BUT other forms of money too
M1
= currency in circulation
M2
= M1 + savings deposits + small time deposits + retail money market deposits $7.3 trillion
Comparing measures
get larger
M1 < M2 add less liquid assets to larger measures
Components of M1
23%
48% 28% 1%
Components of M2
M1 22%
savings 39%
move together in general BUT behavior can vary in short-term M2 most watched