Summary of Learning Objectives
Objective 16-1
Define money and identify the different forms that it takes in the nation’s money supply.
Modern money takes the form of stamped metal or printed paper issued by governments. However, any item that’s portable, divisible, durable, and stable satisfies the basic characteristics of money. Money also serves as a medium of exchange (it is generally accepted as payment for buying and selling things), a store of value (it can be saved and used for future purchases), and a measure of worth (it acts as a measure of worth because all products can be valued in terms of money).
A nation’s money supply is usually measured in two ways. M-1, the spendable money supply, includes the most liquid (or spendable) ...
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