BSCA FIN 101 Chapter 1

Conduits of funds linking investors to the source

Happens when general prices of commodities increases

Are intended for spending and circulated through the use of checks which are as good as money

Changes the level of money supply

Are foregone consumption and savings which could otherwise be part of currency in circulation and reserves which enable banks to create money

The theory that predicts that costs will be less of an inhibition than higher rate of interest

Reflects the opportunity cost of money holdings

Restated and amplified the old quantity theory of money based on the equation of exchange

Determined by the quantity of currency in circulation

Leading monetarist of recent decade