Interest
What is M1?
The narrowest definition of the money supply
What is the formula for future value?
PV(1+i)
what is one thing that functioned as money over time?
Cigarettes
what is currency substitution?
Use of another countrys currency in private transactions
M2=?
M1 + saving deposits
M1=?
Currency + checkable deposits
What is commodity money?
Money that has some other use other then being a medium of exchange
What is legal tender?
Assets accepted for repayment of debt to the government as well as private transactions
What is medium of exchange?
Usable for buying and selling goods
What is future value?
The normal value of asset
What are two widely types of money used over time?
gold and silver
What is dollarization?
The situations when market participants use another country's currency as money
What is future value?
The normal value of an asset such as money at some point in time in the future
What is compound interest?
Interest earned on the principal plus interest
What is time value of money?
Money received today has a higher value than money received in the future
What does official semi-dollarization?
Another country’s currency is legal tender but the country also issues its own currency
Society uses monetary units for?
As a yardstick for measuring the relative worth of a wide variety of goods
What is time value money?
What is cryptocurrencies?
They may not survive but their underlying technology may turn out to be very disruptive
Are currencies considered money all the time?
No