中山英语培训Money
If you can actually count your money, then you are not
really a rich man.
——American oil billionaire J. Paul Getty
What is money
Economists define money as anything that is generally
accepted in payment for goods or rvices or in the repayment
of debts.
Types of moneypointto
万一A. Commodity money
B. Convertible paper money
C. Fiat money(or fiat currency):
Usually paper money, is a type of currency who only value is that a government made a fiat that the money i s a legal method of exchange.
Unlike commodity money or reprentative money it is not
bad in another commodity such as gold or silver and is not
covered by a special rerve.
D. Private debt money
E. Electronic money
Private debt money
A loan that the borrower promis to repay in currency on
demand. . IOU the checkable deposit at commercial banks and
other financial institutions.
Commercial notes（商业票据）:Short-term, uncured, discounted, and negotiable notes sold by one company t o another in order to satisfy immediate cash needs.
Include: promissory note (期票，拮据) draft (汇票) check and so on.
Electronic money: Electronic Check, Internet Payment System, Credit Card Service
What does money do
A. Medium of Exchange
In almost all market transactions in our economy, money i n the form of currency or checks is a medium of exchange; it is
ud to pay for goods and rvices. The u of money a s a medium of exchange promotes economic efficiency by eliminating much of the time spent in exchanging goods and rvices.
Terms: Transaction cost, Time value of money
B. Unit of Account
The cond role of money is to provide a unit of account;
that is, it is ud to measure value in the economy. We m easure the value of goods and rvices in terms of money, just as we measure weight in terms of pounds or distance in terms of miles.
deprecatedNote: Fiat money has not only no particular value in u; it
doesn't even really have a value in exchange except that which is decreed that it would have.
Terms: Good money, Bad money
C. Store of Value
Money also functions as a store of value: it is a repository of purchasing power over time. It is an ast. It 's something that we can u to store value away to be retrieved at a later
point in time. So we can not consume today, we can hold money instead - and transfer that consumption power to some point
in the future.
Term: Hard currency
Measuring Monetary Aggregates
1. Measure as “money” only tho asts that are most liquid, hence that function best as a medium of exchange.
2. Include all financial asts in the measure of money, but
weight them in proportion to their liquidity.
1. M1 = Most Narrow Measure (Most Liquid)
M1 = currency + traveler’s checks + demand d eposits + other checkable deposits
2. M2 = M1 + Less Liquid Asts
M2 = M1 + small denomination time deposits + savings deposits
+ money market deposit accounts + money market mutual fund shares
3. M3 = M2 + Less Liquid Asts
英语四级作文常用句型
Money supply
The revenue raid through the printing of money. When t he government prints money to finance expenditure, it increas
the money supply. The increa in the money supply, in turn,
upucaus inflation. Printing money to rai revenue is like
imposing an inflation tax.
To expand the money supply:
The Federal Rerve buys Treasury Bonds and pays for them
with new money.
To reduce the money supply:
The Federal Rerve lls Treasury Bonds and receives the existing dollars and then destroys them.
Inflation
美国宾夕法尼亚大学
Inflation is an increa in the average level of prices,
and a price is the rate at which money is exchanged for a good
or rvice.
Here is a great illustration of the power of inflation:
In 1970, the New Y ork Times cost 15 cents, the median price of a single-family home was $23,400, and the average wage in
manufacturing was $ per hour. In 2008, the Times cost $, the
price of a home was $183,300, and the average wage was $ per hour.
Hyperinflation is defined as inflation that exceeds 50
percent per month, which is just over 1 percent a day.
Questions
1. Money is not unique as a store of value; any ast, be
domination
it money, stocks, bonds, land, hous, art, or jewelry, can be ud to store wealth. Many such asts have advantages over
money as a store of value: They often pay the owner a higher
interest rate than money, experience price appreciation, and
苦闷
deliver rvices such as providing a roof over one's head. If
the asts are a more desirable store of value than money,
フォルト
why do people hold money at all
The answer to this question relates to the important
economic concept of liquidity.
2. Rank the following asts from most liquid to least
liquid:
a.Checking account deposits
b. Hous
c. Currency
d. Washing machines
e. Savings deposits
f. Common
stock
3. Why have some economists described money during a
