Chapter Ten Vocabulary: Money and Banking Flashcards
Money
anything that serves as a medium of exchange, a unit of account, and a store of value
Medium of Exchange
anything that is used to determine call during the exchange of goods and services
Barter
the direct exchange of one set of goods or services for another
Unit of Account
a means of comparing the values of goods and services
Store of Value
something that keeps its value if it is stored rather than used
Currency
coins and paper bills used as money
Commodity Money
objects that have value in themselves and that are also used as money
Representative Money
objects that have value because the holder can exchange them for something else of value
Fiat Money
money that has value because the government has ordered that is is an acceptable means to pay debts
Bank
an institution for receiving, keeping, and lending money
National Bank
a bank chartered, or licensed, by the national government
Bank Run
widespread panic in which people try to redeem their paper money
Greenback
paper currency issued during the Civil War
Gold Standard
a monetary system in which paper money and coins are equal to the value of a certain amount of gold
Federal Reserve System
the nation’s central banking system