Topic 6: The Monetary System

Macroeconomics (SHAD 1053)

by LIM HUI YING

After studying this topic, we know that

* Money is any commodity or token that is generally accepted as a means of payment.

* Money is something that can be recognized.

* Money can be divided up into small parts.

* The Functions of Money

Medium of exchange
Unit of account
Store of value

Posted on 27 April 2018, 11:25 AM
Last updated 27 April 2018, 11:35 AM

After studying this topic, we can define money and describe its functions and describe the functions of banks. Besides we can also learn how to describe the functions of the Federal Reserve System (the Fed) and able to explain how the banking system creates money and how the Fed controls the quantity of money.

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