Econ Vocab 10 Flashcards
Money
anything that people will accept as payment for goods and services
medium of exchange
the means through which goods and services can be exchanged
Barter
exchanging goods and services for other goods and services
standard of value
the yardstick of economic worth in the exchange process
store of value
something that holds its value over time
Commodity money
derives its value from the type of material from which it is composed
Representative money
paper money backed by something tangible
Flat money
has no tangible backing, but it is declared by the government that issues it, and accepted by citizens who use it, to have worth.
Currency
paper money and coins
Demand deposits
a checking account where funds in checking accounts can be converted into currency “on demand”
Near Money
it includes savings accounts and other similar time and de that cannot be used as a medium of exchange but can be converted into cash relatively easily.
State banks
banks chartered, or licensed, by state governments
national banks
banks charted by the national government
Gold standard
a system in which the basic monetary unit(ex. one dollar) is equal to a set amount of gold
automated teller machines
(ATMs) electronic devices that allow bank customers to make deposits, withdrawals, and transfers and check their account balances at any time without seeing a bank officer.
