Exam prep Flashcards
(10 cards)
1
Q
3 characters of money?
A
Unit of account / Medium of exchange / Store of value
2
Q
Unit of account means?
A
it is used to compare prices of goods and services.
3
Q
Medium of Exchange means?
A
people use it in transactions.
4
Q
Store of value means?
A
way people can transfer wealth from the present to the futu
5
Q
M1?
A
Most assest - Physical currency, demand/savings deposits, & those quickly converted to cash
6
Q
M2?
A
M1 + money market funds, small time deposits (less liquidity)
7
Q
Liquidity
A
asset can be realdilty into currency
8
Q
Formula velocity of Money
A
Velocity = Value of all transactions / money supply
9
Q
Activies of Federal
A
Monetary, Banking supervison, fiancial services
10
Q
A
