TAILIEUCHUNG - Lecture Business: A changing world - Chapter 15: Money and the financial system

After reading this chapter, you will be able to: Define money, its functions, and its characteristics; describe various types of money; specify how the Bank of Canada manages the money supply and regulates the Canadian banking system; compare and contrast banks, trust companies, and credit unions/caisses populaires;. | Chapter Fifteen Money and the Financial System 15-1 The Three Functions of Money Medium of Accepted as payment for Exchange products and resources Unit of Single standard for assigning measurement and comparing values of products and resources Store of Means of retaining and value accumulating wealth The Six Characteristics of Money Acceptability Divisibility Portability Stability Durability Difficulty to counterfeit 15-2 Penny Pinchers 15-3 Source: news/ 65-over 18-29 30-44 45-64 46% 40% 56% 71% A penny saved is Those who always take pennies in change While 67% of adults say the government should continue making pennies, 51% sometimes leave theirs at the store. Near Money Savings account Money market account Guaranteed investment certificates Credit card Debit card Traveler’s cheque Money order Cashier’s cheque 15-5 Credit Card Bill Paying Pay all each month 44% 40% Never pay off 36% 45% Pay some monthly 21% 15% 15-6 Source: “A New .

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