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CHAPTER 34: MONEY - Coggle Diagram
CHAPTER 34: MONEY
FUNCTIONS OF MONEY
Medium of exchange
used to buy and sell goods and products
Unit of account
measurable and compareable
Store of value
asset set aside for present/future
Liquidity
ability to covert into cash quickly
COMPONENTS OF MONEY
M1
Currency (paper notes and coins)
Checkable deposits
Other liquid deposits
Commercial banks
Savings and loan associations
Mutual savings banks
Credit union
M2
All of M1
Near monies
Not mediums of exchange but highly liquid
Small dominated time deposits
Retaill money market funds
MMMF (Money market mutual funds)
MMDA (Money market deposit accounts)
No currency from banks: Avoids double counting