UB ECO 181 - Exam 3 Study Guide (24 pages)

Previewing pages 1, 2, 23, 24 of 24 page document View the full content.
View Full Document

Exam 3 Study Guide



Previewing pages 1, 2, 23, 24 of actual document.

View the full content.
View Full Document
View Full Document

Exam 3 Study Guide

1071 views

Here is a Study Guide for Exam 3 ... Good Luck !!!


Pages:
24
Type:
Study Guide
School:
University at Buffalo, The State University of New York
Course:
Eco 181 - Intro to Macroeconomics
Intro to Macroeconomics Documents

Unformatted text preview:

ECO 181 1nd Edition Exam 3 Study Guide Lectures 15 16 33 and 17 ECO EXAM 3 Study Guide CHP 15 I The Monetary System Money o The set of assets that people use regularly to buy goods and services o Money doesn t hold interest when are holding it Some consider that a problem Wealth o Total accumulation of all asses o Physical assets have value exchanged for something of value II Importance of Money Without money trade would require barter the exchange of one good or service for another Every trade would require a double coincidence of wants which is where one person is seeing what you want and they want what you are selling Would require a lot of resources thus money makes trade easier Permits specialization facilitates efficiency and growth III 4 Functions of Money 1 Medium of Exchange o An item buyers give to sellers when they want to purchase goods and services 2 Unit of Account o The yardstick people use to post prices and record debts 3 Store of Value o An item people can use to transfer purchasing power from the present to the future Many assets can take on the form of stores of valure and most are better stores of value due to inflation but only money can take on all 3 functions of money o Bonds are interest paying assets o Money isn t a perfect store of value due to inflation 4 Form of Deferred Payment o A property of an item that makes it desirable for use as a means of settling V What is counted as money Credit card are liabilities not assets and are not counted as money Two kinds of money Commodity Money o Takes the form of a commodity with intrinsic value o Ex gold coins ciggartees in POW camps Fiat Money o Money without intrinsic value used as money because of government degree o Ex U S Dollar VI What Backs Money For commodity money its is its intrinsic value o Waste of valuable resources For convertible money it can be exchanged for something of value For fiat money it is the promise of the government VII Fiduciary Monetary System A system in which



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Exam 3 Study Guide and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Exam 3 Study Guide and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?