ECON 2305 Lecture 23 Outline of Last Lecture I Investment II Inflation Outline of Current Lecture I Money Current Lecture Money Anything that is readily acceptable as payment for goods and services Prison money Cigarettes Mackerel Tins Honey buns Functions of Money Medium of exchange Unit of accounting Store value Standard of deferred payment Evolution of Payments Barter Universal acceptance Currency Checking Electronic What gives money its value Widespread acceptance Confidence No intrinsic value Financial Intermediaries Banks Credit Unions Savings Loans Institutions These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Insurance Companies What do they do Bring borrowers savers together Banking System Dual regulation system Fractional reserve system A system in which depository institutions hold reserves that are less than the amount of total deposits Can a bank create money Yes by lending money What is the goal of the bank Make a profit capitalist pigs
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