Fractional Reserve Banking
Fractional reserve banking is a system in which banks are only required to hold a fraction of customer deposits as reserves, allowing them to lend out the majority of the funds.
Money Supply
Money supply looks at what money is and how it is controlled.
Quantity Theory of Money
Table of Contents What is the Quantity Theory of Money? Quantity Theory of Money Formula Assumptions of the Quantity Theory of Money Implications of the Quantity Theory of Money Criticisms and Limitations of the Quantity Theory of Money FAQs Quantity Theory of Money: Definition, Assumptions & Formula Written by Paul Boyce Posted in Macroeconomics >
Types of Money: Commodity, Fiat & Commercial
Money is a medium of exchange. It allows two people to trade without needing what the other wants.
Commodity Money: What it is, Why it has value & Examples
We can define Commodity money as a physical good that consumers universally use to trade for other goods. In other words, it is like the money we use today, but has an actual value.
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Fiat Money: How it works, Examples, Pros & Cons
Fiat money is a type of currency whereby the value is guaranteed by government decree.