The Monetary System, Money Growth and Inflation
Money is the set of assets in an economy that people regularly use to buy goods and services from other people.
Functions of money
Units of Account
Store of value
Medium of exchange
Buyers give to sellers when they want to purchase goods and service
To post price and record debts
To transfer purchasing power from the present to the future
Kind of money
Commodity money
Fiat Money
Golds, silver, cigarettes
Coins, currency, check deposits
Bank Negara Malaysia
Central bank for Malaysia
Objectives BNM
To issue currency and keep reserve safeguarding the value of the currency
To promote monetary stability adviser to the government
To promote monetary stability and a sound financial structure
To influence the credit situation to the advantage of the country