Money & banks Noura Almudimigh 438200067 Ohoud Almoaither 438200078 Nourh Alolayan 438200025 مبادئ االقتصاد الكلي 21m The concept of money • Is anything that is generally acceptable to sellers in exchange for goods and services. Nourh Alolayan The Functions of Money o Medium of exchange: o Standard object - exchange goods & services o Divisible o Compact (easy to carry): high value per unit of volume or weight o Identical (uniform) o Unit of account o Standard unit – quoting prices o Store of value o Store wealth o Storable and durable Noura Almudimigh The importance of money in the economy make the whole economy more productive the extent of exchange is greatly increased Money flows through the modern world with astonishing speed • The efficiency of money and banks is very influential, both in individual’s lives and the macroeconomy. • Money is a means of providing food, drink and clothing • • • Ohoud Almoaither Index • The concept of money slide 2 • The Functions of Money slide 3 • The importance of money in the economy slide 4