Chapter 10 Vocab Flashcards
Anything that is used to determine value during the exchange of goods and services
Medium of exchange
Anything that serves as a medium of exchange a unit of account and a state of value
Money
The direct exchange of one set of goods or services for another
Barter
A means for comparing the values of goods and services
Unit of account
Something that keeps it’s value if it is stored rather than used
Store of value
Coins and paper bills used as money
Currency
Objects that have value in themselves and that are also used as money
Commodity money
Objects that have value because the holder can exchange them for something else of value
Representative money
Money that has value because the government has orders that it is an acceptable means to pay debt
Fiat money
An institution for receiving keeping and lending money
Bank
A bank charted or licensed by the national government
National bank
Widespread panic in which great numbers of people try to redeem their paper money
Bank run
Paper currency issued during civil war
Gold standard
The nations central banking system
Federal reserve system
Bank that can lend to other banks in times of need
Central bank
Bank the belongs to the federal reserve system
Member bank
The national currency we use today in the us
Federal reserve note
The severe economic decline that began in 1929 and lasted for more than a decade
Great Depression
The government agency that insures customer deposits if a bank fails
Federal deposit insurance corporation FDIC
All the money available in the us economy
Money supply
The ability to be used a a or directly converted to cash
Liquidity
The money in checking accounts
Demand deposits
A fund that pools money from small savers to purchase short term government and corporate securities
Money market mutual fund
A banking system that keeps only a fraction of funds on hand and lends out the remainder
Fractional reserve banking
Failure to pay back a loan
Default
A specific type of loan that is used to buy real estate
Mortgage
A card entitling it’s holder to buy goods and services based on the holders promise to pay for these goods and services
Credit card
The price for the use of borrowed moeny
Interest
The amount if money borrowed
Principal
A card used to withdraw money
Debit card
Person or institution to whom money is owed
Creditor
