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System
An Overview of Money
What is Money?
Barter is the direct exchange of goods and
services for other goods and services.
A barter system requires a double
coincidence of wants for trade to take
place. Money eliminates this problem.
As a medium of exchange, or means of
payment, money is generally accepted by
buyers and sellers as payment for goods
and services.
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What is Money?
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What is Money?
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What is Money?
Money is easily portable,
and easily exchanged for
goods at all times.
The liquidity property
of money makes money
a good medium of
exchange as well as a
store of value.
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LIABILITIES
Reserves
20
100
Deposits
Loans
90
10
Net worth
110
110
Total
Total
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e x c e s s re s e rv e s a c tu a l re s e rv e s re q u ire d re s e rv e s
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Deposits
100
80
64
51.20
.
.
.
.
.
.
Total
500.00
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precision,
are extremely flexible, and
are fairly predictable.
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