money terms
Interest earned on the principal plus interest.
Compound Interest:
the measurements that are used
monetary aggregates
Are currencies considered money all the time?
usable for buying or selling goods and services
medium of exchange
One of the narrowest measurements of the money supply
What is M1
Assets accepted for repayment of debt to the government as well as private transactions.
Various measurements of the money supply.
Monetary Aggregates
all if M1, saving deposits, including money market deposit accounts, small time deposits, shaes in retail MMMFs, Net of retirement accounts
M2:
The situation when market participants use another country’s currency as money
what is Dollarization
money that has some other use other than being a medium of exchange, being a unit of account, and having a store of value.
what is commodity money
worked fairly well as a monetary aggregate or a measurement of the money supply.
M1
Use of another country’s currency in private transactions.
what is currency substitution
money aids ration decision making by enabling buyers and sellers to easily compare the prices of various good, services, and resources
Unit of account:
important to discuss to get the closest estimate so its known how much or how little is in supply.
money supply:
another country’s currency is legal, but the country also issues its own currency.
Official semi-dollarization: