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1、CHAPTER13Money,Banks,andtheFederalReserveSystemIn2008,Zimbabweansweresufferingshortagesoffuel,food,andotherbasicgoods.Akeyproblemwasthatthegovernment’smismanagementhadcausedtheZimbabweandollartolosemostofitsvalue.FernandoQuijanoPreparedby:CHAPTER1313.1Wh
2、atIsMoney,andWhyDoWeNeedIt?Definemoneyanddiscussitsfourfunctions.13.2HowIsMoneyMeasuredintheUnitedStatesToday?DiscussthedefinitionsofthemoneysupplyusedintheUnitedStatestoday.13.3HowDoBanksCreateMoney?Explainhowbankscreatemoney.13.4TheFederalReserveSystemDi
3、scussthethreepolicytoolstheFederalReserveusestomanagethemoneysupply.13.5TheQuantityTheoryofMoneyExplainthequantitytheoryofmoneyanduseittoexplainhowhighratesofinflationoccur.ChapterOutlineandLearningObjectivesMoney,Banks,andtheFederalReserveSystemMoneyAss
4、etsthatpeoplearegenerallywillingtoacceptinexchangeforgoodsandservicesorforpaymentofdebts.AssetAnythingofvalueownedbyapersonorafirm.WhatIsMoney,andWhyDoWeNeedIt?Definemoneyanddiscussitsfourfunctions.13.1LEARNINGOBJECTIVEWhatIsMoney,andWhyDoWeNeedIt?Commodit
5、ymoneyAgoodusedasmoneythatalsohasvalueindependentofitsuseasmoney.BarterandtheInventionofMoneyTheFunctionsofMoneyAnythingusedasmoney—whetheradeerskin,acowrieseashell,cigarettes,oradollarbill—shouldfulfillthefollowingfourfunctions:•Mediumofexchange•Unitofacc
6、ount•Storeofvalue•StandardofdeferredpaymentDefinemoneyanddiscussitsfourfunctions.13.1LEARNINGOBJECTIVEWhatIsMoney,andWhyDoWeNeedIt?MediumofExchangeTheFunctionsofMoneyMoneyservesasamediumofexchangewhensellersarewillingtoacceptitinexchangeforgoodsorservices.
7、UnitofAccountInabartersystem,eachgoodhasmanyprices.StoreofValueMoneyallowsvaluetobestoredeasily:Ifyoudonotuseallyourdollarstobuygoodsandservicestoday,youcanholdtheresttouseinthefuture.StandardofDeferredPaymentMoneyisusefulbecauseitcanserveasastandardofdefe
8、rredpaymentinborrowingandlending.Definemoneyanddiscussitsfourfunctions.13.1LEARNINGOBJECTIVEWhatIsMoney,andWhyDoWeNeedIt?WhatCanServeasMoney?Fivecriteriamakeagoodsuitableforuseasamediumofexchange:Thegoodmustb