TAILIEUCHUNG - Lecture Macroeconomics (19/e) - Chapter 14: Money, banking, and financial institutions

After reading this chapter, you should be able to: Identify and explain the functions of money and the components of the . money supply; describe what "backs" the money supply, making us willing to accept it as payment; discuss the makeup of the Federal Reserve and its relationship to banks and thrifts; identify the functions and responsibilities of the Federal Reserve;. | Money, Banking, and Financial Institutions McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Functions of Money Medium of exchange Used to buy/sell goods Unit of account Goods valued in dollars Store of value Hold some wealth in money form Money is liquid LO1 Money Definition LO1 M1 M2 Currency Checkable deposits Institutions offering checkable deposits Commercial banks Savings and loan associations Mutual savings banks Credit unions M1 plus near-monies Savings deposits including money market deposit accounts (MMDA) Small-denominated time deposits Money market mutual funds (MMMF) What “Backs” the Money Supply? Guaranteed by government’s ability to keep value stable Money as debt Why is money valuable? Acceptability Legal tender Relative scarcity LO2 What “Backs” the Money Supply? Prices affect purchasing power of money Hyperinflation renders money unacceptable Stabilizing money’s purchasing power Intelligent management of the .

• Kinh tế học
• Lecture Macroeconomics
• Kinh tế vĩ mô
• Economic theory
• Financial institutions
• Functions of money
• Money supply
• Bài giảng Kinh tế vĩ mô
• Science of macroeconomics
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Principles of microeconomics
• Economic models
• Tools of microeconomics
• Microeconomic transactions
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory