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Medium of exchange refers to any item accepted by a seller from a buyer to pay for goods and services. Unit of account is the standard unit prices are stated in and values can be compared. Store of value refers to assets set aside for future use. M1, the narrowly defined money supply, includes currency in circulation and checkable deposits. It consists of Federal Reserve notes and checkable deposits against which checks can be written in commercial banks and thrift institutions. M2, the broadly defined mone

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