Money & Banking

Money makes the world go round
Money makes the world go round

Money is primarily the medium of exchange on an economy; it’s what people trade for goods and services.  Money includes more than just physical currency; it also includes bank deposits since we often make purchases with checks or cards that withdraw from our bank accounts.

Banks create money whenever they extend a loan.  The new loan represents new purchasing power and the deposit that backs the loan is also money.

Real World Examples

Advice for Students
Anonymous asked:

Hey Dirk, can you define and provide an example of ...

Dirk Deciphers: Moral hazard exists when people have an incentive to c... more
View More
Who's Dirk?
More on the man, himself. Meet Dirk
Econ Media Library
Check out multimedia tools, videos and more in our Media Library