Ideas in this flowchart

• Money is anything acceptable as payment for goods and services.
• Suitable money as a means of exchange must have several properties.
• Money should be scarce.
• Money should be durable.
• Money should be portable.
• Money should be divisible.
• Money has three main functions.
• Money functions as a medium of exchange.
• Money functions as a standard of value.
• Money functions as a store of value.
• The U.S. money supply consists of currency, demand deposits, and time deposits.
• Currency is cash held as coins and paper money.
• Demand deposits are checking-account funds that depositors can withdraw on demand.
• Time deposits earn interest but cannot be withdrawn on demand.
• M1 includes currency and demand deposits.
• M2 includes all M1 money, time deposits, and other money that is not immediately accessible.