ECON 3300: chapter 3 - what is money
Wealth
he total collection of pieces of property that serve to store value such as bonds, common stock, art, land, furniture, cars, and houses.
unit of account
it is used to measure value in the economy. We measure the value of goods and service in terms of money, just as we measure weight in terms of pounds or distance in terms of miles.
commodity money
money made up of precious metals or another valuable commodity
hyperinflation
the inflation rate is exceeds 50% per month
liquidity
the relative ease and speed with which an asset can be converted into a medium of exchange. Money is the most liquid asset of all because it is the medium of exchange: it does not have to be converted into anything else to make purchases.
transaction cost
the time spent trying to exchange goods or services.
store of vaule
a repository of purchasing power over time and used to save purchasing power from the time income is received until the time it is spent.