西方经济学10课件.pptVIP

2021/2/6 * The Functions Of Money: Medium Of Exchange ★ A medium of exchange is ◆ an item that buyers give to sellers when they want to purchase goods and services. ◆ anything that is readily acceptable as payment. 2021/2/6 * The Functions of Money ★ Standard of value A Standard of value is the yardstick people use to post prices and record debts. ★ Store of Value A store of value is an item that people can use to transfer purchasing power from the present to the future. 2021/2/6 * The Functions of Money ★ Liquidity Liquidity is the ease with which an asset can be converted into the economy’s medium of exchange. 2021/2/6 * The Kinds of Money ★ Commodity money takes the form of a commodity with intrinsic value. Examples: Gold, silver, cigarettes. ★ Fiat money is used as money because of government decree. It does not have intrinsic value. Examples: Coins, currency, check deposits. 2021/2/6 * Money in the Canadian Economy ★ The quantity of money circulating in the economy is called the money stock ◆ Currency is the paper bills and coins in the hands of the public. ◆ Demand deposits are balances in bank accounts that depositors can access on demand by writing a check. 2021/2/6 * The Simple Case of 100-Percent-Reserve Banking ★ Deposits that banks have received but have not loaned out are called reserves ★ If all deposits are held as reserves, this would be called 100-percent-reserve banking ★ The financial position of the bank can be expressed with a T-account First National Bank Assets Liabilities Reserves $100 Deposits $100 2021/2/6 * Money Creation with Fractional-Reserve Banking ★ Reserves are deposits that banks have received but have not loaned out. ★ In a fractional-reserve banking system, banks hold a fraction of the money deposited as reserves and lend out the rest. ★ The fraction of total deposits the bank holds as reserves is called the reserve ratio. 2021/2/6 * Money Creation with Fractional-Reserve Banking ★ W