APecon Module 23

Medium of exchange, store of value, unit of account

commodity blown, commodity backed money, fiat money

Counterfeiting, government officials who have the authority to print money will be tempted to abuse the privilege by printing out so much money that they create inflation

The most narrowly defined money supply, equal to currency in the hands of the public and the checkable deposits of commercial banks and thrift institutions. Most liquid.

Includes all of M1 and adds several other kinds of assets, often referred to as near moneys.