Ch 14: Fundamentals of Money

About This Chapter

Ensure you have a comprehensive understanding of the fundamentals of money by exploring the engaging lessons in this self-paced chapter. Multiple-choice quizzes can check your knowledge and boost your confidence as you study for a test or aim to earn course credit.

Fundamentals of Money - Chapter Summary

Our instructors have developed fun lessons you can access any time to strengthen your grasp of the fundamentals of money. By studying this chapter, you can gain greater insight into topics like money as a store of value, how money is made and the multiplier effect. Use our self-assessment quizzes and practice exam to find out how much you understand about these topics. If you develop questions while reviewing the lessons, don't hesitate to submit them to our experts. Once you've completed this chapter, you will be ready to do the following:

  • Explain the function of money as a medium of exchange
  • Differentiate between money as a store of value and money as a standard of value
  • Discuss how to measure the money supply
  • Provide examples of bank assets and liability
  • Describe how money is made through bank lending
  • Discuss the concept of the multiplier effect

7 Lessons in Chapter 14: Fundamentals of Money
Test your knowledge with a 30-question chapter practice test
Money as a Medium of Exchange: Definition, Function & Examples

1. Money as a Medium of Exchange: Definition, Function & Examples

Money serves several different functions in a modern economy. In this lesson, you'll learn that money is a medium of exchange and discover how it works in our economy. You'll also have a chance to take a short quiz after the lesson.

Money as a Store of Value: Definition & Overview

2. Money as a Store of Value: Definition & Overview

Money presents many advantages for economic development. In this lesson, you'll learn about how money can store value, as well as learn of other commodities that act as stores of value as well.

Money as a Standard of Value: Definition & Overview

3. Money as a Standard of Value: Definition & Overview

In this lesson, we will explore the concept of money acting as a standard of value so that individuals and businesses can make informed comparisons when making financial decisions.

Measuring the Money Supply: Explanation and Examples

4. Measuring the Money Supply: Explanation and Examples

Discover how the Federal Reserve defines the money supply by exploring the components of the money stock. In this lesson, we also look at the money supply in terms of function and liquidity.

Bank Assets & Liabilities: Definitions & Examples

5. Bank Assets & Liabilities: Definitions & Examples

In this lesson, you'll learn about the different types of bank assets and liabilities. We'll look at examples of bank assets and liabilities including a discussion of rate sensitive assets and liabilities.

How Money Is Made: Understanding Bank Lending in the Economy

6. How Money Is Made: Understanding Bank Lending in the Economy

In this lesson, you'll learn how a single deposit in a local bank increases the money supply and filters through the economy with the help of the fractional reserve banking system.

Money and Multiplier Effect: Formula and Reserve Ratio

7. Money and Multiplier Effect: Formula and Reserve Ratio

In this lesson, explore the concept of the multiplier effect and the money multiplier. Then, learn the formula for calculating changes in the money supply.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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