Money And Banking — Chapter Summary

Barter economy is called a C

Barter economy is called a C-C economy where C stands for commodity. Goods and services are exchanged directly for other goods and services without us

Money is anything that is generally

Money is anything that is generally acceptable as a means of exchange and also works as a measure and store of value. Economists also define money thr

Important kinds of money include legal

Important kinds of money include legal tender money, standard money, full-bodied money, token money, fiat money, bank money, and near money. Coins are

Money has primary functions

Money has primary functions, secondary functions, contingent functions, static functions, and dynamic functions. The main primary functions are medium

Supply of money is the total

Supply of money is the total stock of money held by the public at a particular point of time. It is a stock variable, not a flow variable. Money suppl