Video 1: There are 3 types of money; Commodity Money, Representative Money, and Fiat Money. Fiat money is the type of money we use today. It is an object, usually paper or coins, that has value because the government says it has value. There are also 3 functions of money It a can like a Median Exchange, stores value, and a unit of account.
Video 2: Money market graph is very similar to the supply and demand graph. The only difference is it is interest rate and quantity being measured instead of price and quantity. This is because Interest rate is the price to borrow money.
Video 3: There are tools to which the FED and manipulate money supply. These are called Expansionary and Contractionary. Expansionary is used to battle a recession. Contractionary is used to battle inflation.
Video 4: The loanable funds graph is also very similar to the supply and demand graph. The only difference is that the quantity of loanable funds instead of goods. Also, in this graph, savings are considered a plus. This is because savings in the bank mean more loanable money.
Video 5: Money creation is done by making loans. This is because when a bank loans out money, they charge interest. The money being loaned with increases with the money multiplier. The money multiplier is 5.
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