What Is Money

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=r5eFObOFcME

VIDEO UPDATE: Since May of 2020, M1 also includes savings deposits. • That may seem like a really simple question, but it’s actually kind of complicated. Paper bills and coins, or currency, is obviously money. But it doesn’t end there. • Technically, “money” is anything that is a widely accepted means of payment. This has changed throughout history. Once upon a time, cattle could be considered money. Or cowry shells. Today, cryptocurrencies like Bitcoin are being added to the mix. • Given that there’s no set definition for what makes a commodity money, there are a few measurements for the U.S. money supplies. The first, MB (or “monetary base”) measures currency and reserve deposits. This is what the Fed has the most direct control over. • Our next stop will be fractional reserve banking and the money multiplier. • Subscribe for new videos: http://bit.ly/1Rib5V8 • Macroeconomics Course: http://bit.ly/2v9RG5K • Next video: http://bit.ly/2txoymI

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