In this lesson, our instructor Jibin Park gives an introduction to the definition and time value of money. He discusses what money is, the roles of money, the types of money, m1 and m2, and present and future value.
Money plays three roles: medium of exchange, store of value and unit of account
Types of money include commodity money, commodity-backed money and fiat money
Countries today use a fiat currency, which has no intrinsic value
M1 money includes cash, money in checking accounts and traveler’s checks
M2 money includes M1 money plus savings accounts, certificates of deposits and money market funds
The time value equation is as follows: Future Value (FV) = Present Value (PV) x (1_r)n
The Definition & Time Value of Money
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.