chapter 10 econ Flashcards
what is medium of exchange?
buy something, sell something, trade medium for cash
unit of accounting?
price in dollars
store of value?
savings account, inflation is down
6 characterists of money?
- durable 2.portable 3.divisability 4. uniform 5. limited supply 6.acceptable
sources of money value?
commodity money, hard money, fiat
what is commodity money?
has another purpose (animal hides)
what is hard money?
money made out of metals, gold silver ect.
what three countires money circulated in the colonies
spanish, french, dutch
what did fiet money lead to?
wide spread inflation
Who set up the first and second US banks?
hamliton
what did jackson do with the banks?
tamming fincial market bankers and wealthy kills 2nd nat bank
wildcat banks?
jacksons supporters, took fed amd deposited into these banks
what did wilson do?
set up fed reserve system btoke nation into 12 districts
what did FDR do?
closed banks for 3 days, took us off of gold, good banks reopened with fdic
what did johnson do ?
took us off of silver, making the US fiet
Savings and loan pricing?
crisis in banking system TX OK LA, oil guys failed on loan FSLIC couldnt pay off all dept so congress bailed them out
liquiditity?
how quick you can turn an asset into money
M1?
most liquid, cash, checks, debit cards
M2?
assests under $100,000 stocks, cars, savings accounts
M3?
assets over 100,000 retirement accounts, houses
functions od finical institions
storing money, saving money, loans
upsidedown?
owe more on a house than the house is worth
credit cards?
personal loans on your word to pay it back
