money supply Flashcards
1
Q
narrow money
A
any means of money that can be used as a medium of exchange ; notes and coins
2
Q
broad money
A
includes everything in narrow money but also assets that serve as a store of value but are too liquid to be a medium of exchange
3
Q
sight deposit
A
money deposited with a bank which can be withdrawn at any time with no penalty
4
Q
time deposit
A
money deposited with a bank that can only be withdrawn after a certain time period with from which withdrawal included a penalty
5
Q
what does liquidity mean
A
the ease with which as asset can be converted into cash without loss of value
6
Q
most liquid to least liquid
A
- cash
- sight deposit
- time deposit
- other financial assets
- shares
- government bonds
- physical assets
