Chapter 7
The Federal Reserve and Monetary Policy In This Chapter:
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Functions of Money Financial Instruments and Markets Creation of M1 Money Supply Federal Reserve System Monetary Tools Open-Market Operations True or False Questions Solved Problems
Functions of Money Money serves as a medium of exchange, a measure of value, and a store of value. As a medium of exchange, money is the payment made to economic resources for their services, which the owners of these resources use to purchase goods and services. For example, labor is paid a money
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