Chapter Ten Vocabulary: Money and Banking Flashcards

1
Q

Money

A

anything that serves as a medium of exchange, a unit of account, and a store of value

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2
Q

Medium of Exchange

A

anything that is used to determine call during the exchange of goods and services

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3
Q

Barter

A

the direct exchange of one set of goods or services for another

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4
Q

Unit of Account

A

a means of comparing the values of goods and services

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5
Q

Store of Value

A

something that keeps its value if it is stored rather than used

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6
Q

Currency

A

coins and paper bills used as money

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7
Q

Commodity Money

A

objects that have value in themselves and that are also used as money

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8
Q

Representative Money

A

objects that have value because the holder can exchange them for something else of value

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9
Q

Fiat Money

A

money that has value because the government has ordered that is is an acceptable means to pay debts

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10
Q

Bank

A

an institution for receiving, keeping, and lending money

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11
Q

National Bank

A

a bank chartered, or licensed, by the national government

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12
Q

Bank Run

A

widespread panic in which people try to redeem their paper money

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13
Q

Greenback

A

paper currency issued during the Civil War

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14
Q

Gold Standard

A

a monetary system in which paper money and coins are equal to the value of a certain amount of gold

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15
Q

Federal Reserve System

A

the nation’s central banking system

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16
Q

Central Bank

A

bank that can lend to other banks in times of need

17
Q

Member Bank

A

bank that belongs to the Federal Reserve System

18
Q

Federal Reserve Note

A

the national currency we use today in the United States

19
Q

Great Depression

A

the server economic decline that began in 1929 and lasted for more than a decade

20
Q

Federal Deposit Insurance Corporation (FDIC)

A

the government agency that insures customer deposits if a bank fails

21
Q

Money Supply

A

all the money available in the United States economy

22
Q

Liquidity

A

the ability to be used as, or directly converted to, cash

23
Q

Demand Deposit

A

the money in checking accounts

24
Q

Money Market Mutual Fund

A

a fund that pools money from small savers to purchase short-term government and corporate securities

25
Q

Fractional Reserve Banking

A

a banking system that keeps only a fraction of funs on hand and lends out the remainder

26
Q

Default

A

failure to pay back a loan

27
Q

Mortgage

A

a specific type of loan that is sued to buy real estate

28
Q

Credit Card

A

a card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services

29
Q

Interest

A

the price paid for the use of borrowed money

30
Q

Principal

A

the amount of money borrowed

31
Q

Debit Card

A

a card used to withdraw money

32
Q

Creditor

A

person or institution to whom money is owned