TAILIEUCHUNG - Lecture Understanding economics (2nd edition): Chapter 13 - Mark Lovewell, Khoa Nguyen

Chapter 13 provides knowledge of money. In this chapter, you will: Examine the functions of money, its components, and the various definitions of money; learn about the demand for and supply of money and about equilibrium in the money market; see how money is created and consider the money multiplier. | Understanding Economics Chapter 13 Money Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Objectives In this chapter, you will: examine the functions of money, its components, and the various definitions of money learn about the demand for and supply of money and about equilibrium in the money market see how money is created and consider the money multiplier Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * The Functions of Money There are three main functions that money performs a means of exchange (it overcomes the need for barter) a store of purchasing power a measure of value Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * Deposit-Takers Deposit-takers accept funds provided by savers and lend these funds to borrowers hold cash reserves to meet the needs of depositors withdrawing funds Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * The .

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