The Money Market (HSC SSCE Economics): Flashcards

Medium of exchange

Measure of value

Store of value

Method of deferred payment

Total funds in economy serving all four functions of money

Approximately 95%

$\text{Currency} + \text{Bank deposits with RBA}$

M3

$\text{M3} + \text{NBFI deposits} - \text{NBFI deposits in banks}$

Credit is a promise to pay money in future, not money itself