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COMMUNISM: In theory, an economy based on -- (1) a classless society, where everyone does their best to contribute to the common good, (2) a common, rather than individual, ownership of all resources, (3) the complete disappearance of government, and (4) income allocated based entirely on need rather than on resource ownership or contribution to production (that is, a needs standard, compare contributive standard).

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Lesson 17: Money | Unit 3: Monetary Aggregates Page: 13 of 25

Topic: Near Monies <=PAGE BACK | PAGE NEXT=>

Near monies are savings, but there are several different types of savings.

Types of savings:

  • Standard savings accounts: They pay an interest, but lack check-writing privileges. These are relatively liquid.
  • Certificates of deposit (CDs): They require a minimum deposit for a specified time period and pay higher interest rates. They are less liquid than savings accounts.
  • Money market funds: These funds are invested in negotiable, short-term assets like U.S, treasury bills or commercial paper.
  • Overnight Eurodollars: Accounts denominated in U.S. dollars that are held in foreign banks.
  • Overnight repurchase agreements: Interest-paying business savings accounts that are temporary repositories of non-interest paying business checking account balances.

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FEDERAL FUNDS

A common term for Federal Reserve deposits held by commercial banks, especially when these deposits are loaned between banks through the Federal funds market. The interest rate charged for these interbank loans is termed the Federal funds rate. Federal funds are used by individual banks to meet reserve requirements and the total held by the banking system is manipulated by the Federal Reserve System in the conduct of monetary policy.

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[What's This?]

Today, you are likely to spend a great deal of time browsing about a thrift store hoping to buy either clothing for your kitty cats or a set of luggage without wheels. Be on the lookout for small children selling products door-to-door.
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The 22.6% decline in stock prices on October 19, 1987 was larger than the infamous 12.8% decline on October 29, 1929.
"Man is born to live, not to prepare for life. "

-- Boris Pasternak, writer

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