巴德 宏观经济学原理（英文版·第8版）Chapter 11 PowerPoint.pptxVIP

How does the Fed create money and regulate it? 11When you have completed your study of this chapter, you will be able to1 Define money and describe its functions. 2 Describe the functions of banks.3 Describe the functions of the Federal Reserve System (the Fed).4 Explain how the banking system creates money and how the Fed controls the quantity of money.CHAPTER CHECKLISTThe Monetary System 11.1 WHAT IS MONEY?Definition of MoneyMoney is any commodity or token that is generally accepted as a means of payment. A Commodity or TokenMoney is something that can be recognized.Money can be divided up into small parts. 11.1 WHAT IS MONEY?Generally AcceptedMoney can be used to buy anything and everything.Means of PaymentA means of payment is a method of settling a debt.The Functions of MoneyMoney performs three vital functions:Medium of exchangeUnit of accountStore of value 11.1 WHAT IS MONEY?Medium of ExchangeMedium of exchange is a object that is generally accepted in return for goods and services. Without money, you would have to exchange goods and services directly for other goods and services—an exchange called barter. 11.1 WHAT IS MONEY?Unit of AccountA unit of account is an agreed-upon measure for stating the prices of goods and services.Table 11.1 shows how a unit of account simplifies price comparisons. 11.1 WHAT IS MONEY?Store of ValueA store of value is any commodity or token that can be held and exchanged later for goods and services.The more stable the value of a commodity or token, the better it can act as a store of value and the more useful it is as money. 11.1 WHAT IS MONEY?Money TodayMoney in the world today is called fiat money. Fiat money is objects that are money because the law decrees or orders them to be money. The objects that we use as money today areCurrencyDeposits at banks and other financial institutions 11.1 WHAT IS MONEY?CurrencyThe notes (dollar bills) and coins that we use in the United States today are known as currency.Notes are m