Chapter 10 Vocab Flashcards
Anything that serves as a medium of exchange, a unit of account, and a store of value
Money
Anything that is used to determine value during the exchange of goods and services
Medium of exchange
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 its value of it is stored rather than used
Store of value
Coins and paper bills used as money
Currency
Objects that have value on 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 ordered that it is an acceptable means to pay debts
Fiat money
An institution for receiving, keeping, and lending money
Bank
A bank chartered, 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 the civil war
Greenback
A monetary system in which paper money and coins are equal to the value of a certain amount of gold
Gold standard
The nations central banking system
Federal reserve system
Bank that can lend to other banks in times of need
Central bank
Bank that belongs to the federal reserve system
Member bank
The national currency we use today in the United States
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 United States economy
Money supply
The ability to be used as or directly converted to cash
Liquidity
The money in checking accounts
Demand deposit
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 paid for the use of borrowed money
Interest
The amount of money borrowed
Principal
A card used to withdraw money
Debit card
Person or institution to whom money is owed
Creditor
