Lecture 2 Flashcards
1
Q
DefinemMoney (‘money supply’)
A
as anything that is generally accepted as payment for goods or services or in the repayment of debts
2
Q
How is Money different from Wealth and Income?
A
» Wealth: the total collection of pieces of property that serve to store value.
» Income: flow of earnings per unit of time (a flow concept).
3
Q
Functions of Money
A
» medium of exchange.
» unit of account.
» store of value
» Standard of deferred payment
