Money and Banking (Economics)

Recall cards on money and banking. The four functions that define money: medium of exchange, store of value, unit of account, and standard of deferred payment, plus barter and the double coincidence of wants, and commodity, commodity-backed, and fiat money. Measuring the money supply: the narrow M1 (currency and checking accounts) and the broader M2 (M1 plus savings deposits, money market funds, and certificates of deposit), and why credit cards are not money. The role of banks as depository institutions: assets, liabilities, net worth, bank capital, reserves, the T-account, and the asset-liability time mismatch. How fractional reserve banking creates money through the reserve requirement and the money multiplier.