Chapter One Flashcards
0
Q
Money acts as a standard measure and common denominator of trade.
A
Measure of Value
1
Q
Is an accepted way to settle a debt.
A
Standard of Deferred Payment
2
Q
In economics, money refers to any financial instrument that can fulfill the functions of money.
A
Money Supply
3
Q
Currency (Coins and Bills)
A
M1
4
Q
M1 plus savings accounts and time deposits under $100,000.
A
M2
5
Q
M2 plus larger time deposits and similar institutional accounts.
A
M3
6
Q
Describes how easily an item can be traded for another item.
A
Market Liquidity
