Money Supply Flashcards
1
Q
Narrow Money
A
Money that can be used as a medium of exchange ; cash and liquid deposits in Banks
2
Q
Broad Money
A
Includes everything in narrow money but also assets that serve as stores of value but are too liquid to serve as a medium of exchange
3
Q
Slight Deposit
A
Money deposited with a financial institution that can be withdrawn at any time with no penalty
4
Q
Time Deposits
A
Money deposited with a financial institution that can only be withdrawn after a certain notice period or from which incur a penalty.
5
Q
Liquidity
A
the ease with which an asset can be converted into cash without loss of value
6
Q
Assets becoming less liquid
A
Cash
Sight deposits
Time deposits
Government Bonds
Shares
Physical Assets
