1. Types of Money in the United States
Chapter 14 Section 3
Types of Money in the United States

2. Clip of the Day

4. Money
Money in use today consists of more than just currency. It also includes deposits in checking and certain types of savings accounts, plus certain other investments.

5. Types of Money Currency – Printed money and coins. Checking Accounts
Debit Cards
Credit Cards ≠ Money (It’s a loan)

6. Near Moneys
Assets such as savings accounts, that can be turned into money relatively easy and without the risk of loss of value.

7. The Money Supply The amount of “Money” in the United States.
What constitutes money is not completely agreed upon – two basic definitions are most widely accepted.

8. M1
M1 = All currency, and checkable deposits, and traveler’s checks (Narrow Definition)
These are all things that can be spent immediately through cash or checks with no limits.

9. M2
Includes all of M1 + near moneys such as savings accounts, small-denomination time deposits, money market deposit accounts, etc… (Broader Definition
Think of it as M1 plus money that you could get relatively easy such as going to the bank and taking it out of your account.