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2. Economists use the term money in a more specialized way. a) Define money in terms of its functions, and briefly explain, with examples,
2. Economists use the term "money" in a more specialized way. a) Define money in terms of its functions, and briefly explain, with examples, the money creation role of commercial banks through fractional reserve banking. [10 marks] b) Explain the barter system and identify the challenges out of which money was introduced. [5 marks]
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a Money can be defined in terms of its functions which include Medium of exchange Money serves as a widely accepted instrument for exchanging goods and services It eliminates the need for bartering an...
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
