CHAPTER 2 MONEY CHAPTER OVERVIEW

CHAPTER 2
MONEY
CHAPTER OVERVIEW
This chapter:
o Discusses the characteristics of money.
o Traces the development of money to the present day.
o Establishes the link between the banking system and the money supply.
o Defines the current specifications of money supply and recent changes in its composition.
KEY TERMS
barter system
demand deposit
double coincidence of want
excess reserves
fractional reserves
full-bodied money
medium of exchange
monetary standard
money supply
paper money system
reserve assets
standard for deferred payments
store of value
unit of account