Chapter 12 introduce to the money and banking. In this chapter you will learn: The definition and function of money, what constitutes the supply of money, what backs Canada’s money supply, about the structure of the Canadian financial system. | Money & Banking Chapter 12 SLIDES PREPARED BY JUDITH SKUCE, GEORGIAN COLLEGE In this chapter you will learn The definition and function of money What constitutes the supply of money What backs Canada’s money supply About the structure of the Canadian financial system Chapter 12 Topics The Functions of Money The Supply of Money What “Backs” the Money Supply? The Canadian Banking System Recent Developments in Money & Banking The Functions of Money Medium of exchange The Functions of Money Medium of exchange Unit of account The Functions of Money Medium of exchange Unit of account Store of value Chapter 12 Topics The Functions of Money The Supply of Money What “Backs” the Money Supply? The Canadian Banking System Recent Developments in Money & Banking Currency (coins & paper money) plus Demand deposits equals M1 M1 (billions of dollars) December, 2000 The Supply of Money Table 12-1 The Supply of Money Currency: Coins + Paper Money token money Bank of Canada notes Demand Deposits . | Money & Banking Chapter 12 SLIDES PREPARED BY JUDITH SKUCE, GEORGIAN COLLEGE In this chapter you will learn The definition and function of money What constitutes the supply of money What backs Canada’s money supply About the structure of the Canadian financial system Chapter 12 Topics The Functions of Money The Supply of Money What “Backs” the Money Supply? The Canadian Banking System Recent Developments in Money & Banking The Functions of Money Medium of exchange The Functions of Money Medium of exchange Unit of account The Functions of Money Medium of exchange Unit of account Store of value Chapter 12 Topics The Functions of Money The Supply of Money What “Backs” the Money Supply? The Canadian Banking System Recent Developments in Money & Banking Currency (coins & paper money) plus Demand deposits equals M1 M1 (billions of dollars) December, 2000 The Supply of Money Table 12-1 The Supply of Money Currency: Coins + Paper Money token money Bank of Canada notes Demand Deposits Institutions That Offer Demand Deposits trust companies, caisses populaires, credit unions Currency (coins & paper money) plus Demand deposits equals M1 plus Personal savings deposits, plus Non-personal notice deposits equals M2 M1 M2 The Supply of Money Table 12-1 (billions of dollars) December, 2000 The Supply of Money Near-monies nonchequable savings deposits term deposits Currency (coins & paper money) plus Demand deposits equals M1 plus Personal savings deposits, plus Nonpersonal notice deposits equals M2 plus Deposits: Other intermediaries equals M2+ M1 M2+ M2 The Supply of Money Table 12-1 (billions of dollars) December, 2000 What about credit cards? Credit cards are NOT money! Chapter 12 Topics The Functions of Money The Supply of Money What “Backs” the Money Supply? The Canadian Banking System Recent Developments in Money & Banking What “Backs” the Money Supply? Money as Debt Value of Money Acceptability Legal Tender Relative Scarcity What “Backs” .
