Economics in Depth: Essentials & Explained Perspectives

  Money and Banking Basics 1. Definitions of Money: Money is defined as a widely accepted medium of exchange for goods and services, as well as a unit of account and a store of value within a particular country or socio-economic context. It serves as a facilitator of economic transactions and plays a crucial role in the functioning of modern economies. 2. Types of Money: a. Commodity Money: Commodity money is derived from valuable goods with intrinsic value, such as gold, silver, or other precious metals. Throughout history, commodities like grains, cattle, or shells have also served as forms of commodity money. b. Fiat Money: Fiat money derives its value from government regulation or law, rather than from the value of the material from which it is made. It is declared legal tender by a government and maintains its value based on the trust and confidence of the people using it. c. Representative Money: Representative money includes instruments that can be exchanged for a specifi...

Introduction to Economic Indicators: GDP, GNP, NNP, and NI Gross Domestic Product (GDP) Definition: GDP measures the total value of goods and services produced within a country's borders during a specific period, typically a year or a quarter. Gross National Product (GNP) Definition: GNP measures the total value of goods and services produced by a country's residents, both domestically and abroad, during a specific period. Net National Product (NNP) Definition: NNP measures the total value of goods and services produced by a country's residents after accounting for depreciation, or the loss of value of capital goods over time. National Income (NI) Definition: NI measures the total income earned by a country's residents, including wages, rents, interest, and profits, during a specific period. These economic indicators are important for assessing a country's economic performance and are commonly used by economists, policymakers, and businesses. Understanding these con...