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Money (Properties of money (Portable (The money should be easy to carry),…

- - - - Require " double coincidence"
- - - - Could service as good and money that has intrinsic value内在价值
- - - - Chequing account (in bank)
- - - - Reserve is the currency hold in bank vault, waiting for customers to make withdraws from their account
  - - - EX: bank, mortgage companies
    - - Specialized in making home mortgage loans
    - - The oldest, largest and most diversified of depository institution
        
        Ex: TD, Canada Trust
    - - Depository institutions that extend loans only to their members
  - - - Design, produce, and issues paper bills and coins
    - - Facilitate cheque
    - - Control the money supply
    - - Act as banker for the federal government
  - - - Asset
        
        Reserve : 200$
        
        Loan: 800$
      - Liabilities
        
        Deposit 1000$
    - - Immediately
        
        Reserve : 300$ (200+100)
        
        Loan: 800$
        
        Deposit 1100$
      - Adjustment
        
        Reserve : 220$
        
        Loan: 880$
        
        Deposit 1100$
- - - - Reserve in banking system decrease , bank less likely to borrow, more likely to lend --> overnight rate increase
    - - Reserve in banking system increase , bank less likely to borrow, more likely to lend --> overnight rate decrease
  - - - Charge each other for 24-h loan
    - - Borrow from other banks other than BoC
    - - Commercial banks charge their their best customers who will repay the loans in timely manner