macro

我的想法


$ is an asset that can make purchases to happen at a later day

B) Components of money stock

There are 3 major monetary aggregates: M 1, M 2, M 3

M 1 consists of claims that can be used instantly, directly and without any restrictions to make purchases usually

M1 = currency +checkable deposits

Liquid

Financial Claims are liquid when they can be used conveniently to market transactions

M2 = M1 + near monies

Near monies : they are financially liquid asset that do not function. As a medium of exchange

E.G saving deposits

Small time deposits (less than USD 100,000)

M3 = M2 + large time deposits (Larger than USD 100,000)

Are credit cards a part of monetary aggregate?

==No. They are short-term loans==

Reference

Topic 5 for ECON2005