Ch-10 Flashcards
Barter
The direct exchange of one set of goods or services for another
Money
Anything that serves as a medium of exchange, a unit of account, and a store of value
Store of Value
Something that keeps its value if it is stored rather than used
Currency
Coins and paper bills used as money
Representative Money
Objects that have value because the holder can exchange them for something else of value
Bank
An institution for receiving, keeping, and lending money
Federal Reserve System
The nation’s central banking
Fed Deposit Insurance Corp
The government agency that insures customer deposits if a bank fails
Liquidity
The ability to be used as, or directly converted to, cash
Money Market
Market in which money is lent for periods less than a year
Mortgage
A specific type of loan that is used to buy real estate
Credit Card
A card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services
Interest
The price paid for the use of borrowed money, or money earned by deposited funds
Principal
The amount of money borrowed
Creditor
Person or institution to whom money is owed
