What is money?

6 important questions on What is money?

What does money exchange mean?

money in the form of currency/checks that is used to pay for goods and or services

For what is money essential?

it is essential in an economy because it reduces transaction costs and encourage specialization

What must a medium exchange be?

  • easily standardized
  • widely accepted
  • divisible
  • easy to carry
  • not deteriorate quickly 
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What is an unit of account?

money that is used to measure the value of an economy and reduces transaction costs. peaches and lectures

What are the two names of the monetary aggregates?

M1 and M2

Of what does M1 consist of?

M1(most liquid)
traveller's check
demand deposits
other checkable deposits

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