Money

I.            Money is anything that is accepted in payment for goods and services.

II.            Wealth is the total collection of assets that store value.

III.            Income is a flow of earnings per unit of time.

IV.            Money's utilizations

a.      Medium of exchange

b.      Unit of account

c.       Store of value

V.            Money types

a.      Representative money (IOU's)

b.      Commodity money (salt, cigarettes, gold)

c.       Fiat money (paper money and coins)

VI.            Money characteristics

a.      Durability

b.      Visibility

c.       Portability

d.     Uniformity

e.      Limited Supply

f.        Acceptability

VII.            3 types of money supply

a.      Liquidity

b.      M1 (high liquidity): coins, currency, and checkable deposits (personal and corporate checking accounts which are the largest component of M1). AKA demand deposits.

c.       M2 (medium liquidity): M1 plus savings deposits (money market accounts), time deposits (Certificates of deposit),, and mutual funds below $100,000.

d.     M3 (low liquidity): M2 plus time deposits above $100,000.

Monet (pronounce Mo' Nay) - my cat. A homonym of "money".