文档介绍：CHAPTER 05
MONEY, BANKING, AND THE BANK OF CANADA
Slide 1
What You Will Learn in this Chapter:
The various roles money plays and the many forms it takes in the economy
How the actions of private banks and the Bank of Canada determine the money supply
How the Bank of Canada uses open-market operations and deposit switching to change the ary base
2
The Meaning of Money
Money is any asset that can easily be used to purchase goods and services
Currency in circulation is cash held by the public
Chequeable bank deposits are bank accounts on which people can write cheques
The money supply is the total value of financial assets in the economy that are considered money
3
Roles of Money
A store of value is a means of holding purchasing power over time
A medium of exchange is an asset that individuals acquire for the purpose of trading rather than for their own consumption
A unit of account is a measure used to set prices and make economic calculations
4
Types of Money
Commodity money is a good used as a medium of exchange that has other uses
modity-backed money is a medium of exchange with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods
Fiat money is a medium of exchange whose value derives entirely from its official status as a means of payment
5
Measuring the Money Supply
A ary aggregate is an overall measure of the money supply
Near-moneys are financial assets that can’t be directly used as a medium of exchange but can readily be converted into cash or chequeable bank deposits
6
Three Measures of the Money Supply in Canada, July 2005 (billions of dollars)
Currency
$
+ Demand Deposits
$
= M1
$
M1 + Personal savings deposits
and non-personal notice deposits
$
= M2
$
M2 + Deposits at trust and mortgage and loan
companies, credit unions, and caisse
populaire
$
+ Money market mutual funds, and
deposits at other institutions
$
= M2+
$
7