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DEPOSIT: A bank account maintained by a bank on behalf of a customer. In a fractional-reserve banking system, one of the primary functions of a bank is to keep customer deposits safe. Banks offer a wide range of deposits, including checkable (or transactions) deposits, savings deposits, certificates of deposit, and money market accounts. Such deposits represent a sizable portion of the M1 money supply and as well as broader monetary aggregates -- M2 and M3. They also constitute the bulk of the liabilities of a typically bank.
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Lesson 17: Money | Unit 2: More About Money
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Page: 5 of 25
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Topic:
Medium of Exchange
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The primary function of money is to as THE medium of exchange. An economy without money: - Barter exchange happens when you trade one good for another.
- A barter economy is one that uses nothing but barter trades, no money.
- Barter requires double coincidence of wants: I must want what you have and you must want what I have.
- With no money, resources are used for trading and not for production.
The bottom line: - Using money as a medium of exchange eases the exchange process, makes it more efficient, and frees resources for production.
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AGGREGATE DEMAND DECREASE, SHORT-RUN AGGREGATE MARKET A shock to the short-run aggregate market caused by a decrease in aggregate demand, resulting in and illustrated by a leftward shift of the aggregate demand curve. A decrease in aggregate demand in the short-run aggregate market results in a decrease in the price level and a decrease in real production. The level of real production resulting from the shock can be greater or less than full-employment real production.
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PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time searching for a specialty store looking to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for attractive cable television service repair people.
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This isn't me! What am I?
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Al Capone's business card said he was a used furniture dealer.
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"We can't take any credit for our talents. It's how we use them that counts. " -- Madeleine L'Engle, Writer
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BLS
Bureau of Labor Statistics
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