Chapter 10 - Economics Test Flashcards
The U.S went on the gold standard in 1900 and then
went off the gold standard in 1933
Characteristic of portability
You can carry money in a pocket or purse.
A $1 bill is what
fiat money, a Federal Reserve note, and currency.
is a bank that can lend to other banks in times of need, or a “banker’s bank”
central bank
is an example of fiat money
Wampum
is a formula used to compute the amount of a depository institution’s required reserves.
Reserve requirement
A checking account is an example of
DDA (Direct Deposit Account)
When did banks issue currency
in the early 1800s in the U.S
is a privately owned, publicly controlled, central bank of the U.S
The Federal Reserve System (Fed)
a certificate of ownership in a corporation is called
stock
Most banks are established as
corporations
This note is legal tender for all debts…is printed on notes. This shows that it is a…
medium of change
is a commercial bank chartered by the National Banking System
A national bank
is a form of business organization
corporation
can cost you money in large interest payments.
credit card
Congress enacted the National Currency Act during the
Civil War…it created a National Banking System.
shows than an investor has made a loan
Certificates of deposit (CDs)
provides insurance on depositor’s accounts
FDIC
is a system where currency is the same as gold
The gold standard
money that has no alternative value is
fiat money
