Formulas Flashcards
1
Q
N(n-1)/2
A
Unit of account formula. (A barter economy)
Ex: (10 goods) —> 10(10-1)/2 = 45 prices needed
2
Q
Measuring Money
- M1
- M2
- M2+
- M2++
- M3
A
- M1 = currency + checkable deposits
- M2 = currency + bank deposits + fixed term deposits
- M2+ = M2 (+) deposits @ TMLS (trust & mortgage loans) & CUCPS (Cr unions & caisses populaires)
- M2++ = M2+ (+) certain retail debt instruments
- M3 = M2 (+) non-personal-term deposits + foreign currency bank deposits
3
Q
PV
A
Money now
4
Q
FV
A
Future money
5
Q
YTM = (FV/PV) 1/n -1
A
Find (YTM) when PV & FV & N is given
6
Q
LV / PV = FV/(1+i)n
A
Simple Loan ( one lump sum PMT @ maturity)
