Module 23 Flashcards

1
Q

money

A

anything that is generally acceptable in the exchange for goods and services

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2
Q

currency in circulation

A

actual cash held by the public

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3
Q

checkable bank deposits

A

bank accounts on which people can write checks

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4
Q

money supply

A

total value of financial assets in the econ that are considered money

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5
Q

3 roles of money

A

1) medium of exchange
2) store of value
3) unit of account

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6
Q

commodity money

A

a good used as a medium of exchange that has intrinsic value in other uses

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7
Q

commodity-backed money

A

a medium of exchange with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods

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8
Q

fiat money

A

a medium of exchange whose value derives entirely from its official status as a means of payment

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9
Q

money aggregate

A

overall measure of the money supply

ex: M1, M2

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10
Q

M1

A

money= only currency in circulation + travelers checks + checkable bank deposits

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11
Q

M2

A

money = M1 + near moneys (savings accounts, CD’s, time deposits, money market funds)

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