Chapter 14: Money and Banking
The concept of money, the usage of paper money in the United
States, and the amount of money in circulation are probably
ideas that most people take for granted. Chapter 15 explains
the functions and characteristics of money and modern banking
Section 1 describes the three functions of money: as a medium
of exchange, a unit of accounting, and a store of value. The
section also explores the six characteristics of money.
- Past and Present
Section 2 focuses on important events in the history of American
money and banking and explains the various services provided
by banks and other savings institutions. The section also
analyzes the effects of electronic banking on banking services.
Section 3 explains the difference between money and near moneys.
The components of the M1 and M2 definitions of the money supply
are also described.