Scribd
Upload
26 views2 pages

Chapter 3 MB

The document discusses the meaning and functions of money including its use as a medium of exchange, unit of account, and store of value. It also covers the evolution of payment systems from precious metals to electronic payments and discusses different measures of money supply used by central banks.

Uploaded by

charlie tuna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
26 views2 pages

Chapter 3 MB

The document discusses the meaning and functions of money including its use as a medium of exchange, unit of account, and store of value. It also covers the evolution of payment systems from precious metals to electronic payments and discusses different measures of money supply used by central banks.

Uploaded by

charlie tuna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Meaning and Function of Money

Chapter 3
What Is Money? onomist s Moaning of Monay
for ard
Aryhing thal is generally arepted in pament yrna

Not Ihe sane as wealth or ircome

Functions of Money
1 Medum of eychange
2 Unit of account
3 Store of value
Evolution of Payments Systemn
1.Precious metals lke gold and silver
2. Paper currency (hat mone
Money. Banking 3 Checks
FinancialMarkets 4 Elecirontc means of payment
5 Electronic money Debit cards, Slored-vahye cards, Smart cards E
cash

Bank of Canada's Growth Rates of the Bank's


Monetary Aggregates
Monetary Aggregates
Money as a Weighted Aggregate

The Bank of Canada's money supply measures are


simple-sum' indices,
M= x t X2 t...tn

where x; is one of the n monetary components of the


monetary aggregate M

Weighted monetary aggregates (such as the °Divisia°')


seem to predict inflation and the business cycle
somewhat better than the Bank's aggregates
2005 Pearson Education Canada Inc.
3-5

You might also like