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EconomicsResource
Medium of exchange
sJMW/
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Unit of account value for comparison 97hiRZ2mBqt_-Q?
Store of value
Standard of deferredpayment
Whatnot
Notes and coins Мо
Monetary base
Highpowered тому
Sight Deposits in banks
Мо Sight deposits М
Narrow
тому
Money Zero Maturity мм
You can immediately spendmoney
Short term Time Deposits
You have to wait before spending 30 days
Me Shortterm Time Deposits М
Long term time Deposits
You have to wait before spending
years
Mat Long term Time Deposits М
5 Bills Мз Ми
years Treasury
М fuels A D
, Credit Creation
Deposit f1,000 cash Asset Liabilities
people spend
assume f 1.000 11,000
foulyeof.in cash f 900 loan too deposit
f 810 loan 7810deposit
f 7296 1729deposit
13,439 13,439
f 10.00 110.000
Bonds
Maturity theyear when the holder receives the capital
repayment
Coupon interest rate which is applied to the conical
value to determine the size of the dividend
yearly
Face value nominal amount of the
gilt
Primary Market
Bond issued
Secondary Market
Bought Sold
Sold for a market value
Eg f1000 54 10yr bond
boughtfor 1500 107return 5 96
Ted long run interestrate