Master this deck with 19 terms through effective study methods.
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Widely accepted assets for payment.
Facilitates trade, measures value, and holds wealth.
Reduces trade costs and allows specialization.
Barter requires a double coincidence of wants.
Measures economic value for price comparisons.
To avoid constant price adjustments.
Holds wealth but may earn less interest.
For short periods and small amounts.
Total currency in circulation at a specific time.
Physical currency and bank reserves at the Central Bank.
M1 includes demand deposits accessible for transactions.
M1 plus marketable securities and less liquid bank deposits.
M2 plus money market funds and public deposits.
Interest rates decrease, increasing aggregate demand.
Interest rates increase, reducing aggregate demand.
Buying or selling government securities to influence bank reserves.
The mandated amount banks must hold in reserve.
Interest rate for banks borrowing from the central bank.
Changes in the stance of monetary policy.