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Uploaded by on Mar 26, 2010

http://www.lendinguniverse.com/constructioncontractorrequesters.asp construction loans canada It is easy enough to see that money is important to all of us and to see why, after centuries of experiments, we have made elaborate arrangements to control its supply in the public interest. But this only raises new questions how that power is to be used. The money supply influences expenditures for goods and services. Properly managed, it can promote four of the major objectives of economic policy: full employment, price stability, growth, and balance-of-payments equilibrium. There are three major types of money used in the United States today-coins, paper money, and checking deposits. Until about 300 years ago metal coins were the only kind of money in use. But in the United States, and almost everywhere else today, coins are only small change. In the U.S. in 1970 there were $6 billion worth of coins in use, compared with $52 billion worth of paper money in circulation and bank checking accounts amounting to $163 billion. When we say that Yap islanders use stones for money, we must have some test or definition in mind by which to tell whether something is or is not being used for money. Money is anything that is generally acceptable in exchange for goods and services and for payment of debts. It need not have any other use. People mainly accept it in the expectation of passing it on to someone else in a further exchange. An essential characteristic of money is general confidence in its acceptability as a medium of exchange.
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