Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Money > Money > Flashcards

Money Flashcards

1
Q

________ is the practice of holding only a fraction of the money deposited in a bank and lending the rest.

A

Fractional reserve banking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A _______ is a bank chartered by a state government.

A

state bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

______was a leading Federalist who believed in a strong central government. Argued that the Constitution implied that the federal government had the authority to create a national bank to carry out its duty to regulate currency.

A

hamilton

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The government’s first solution to this problem was to issue a new currency backed by government bonds. These U.S. bank notes were called

A

greenbacks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The ______ is a system that backs the basic monetary unit with a set amount of gold.

A

gold standard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

is anything that people will accept as payment for goods and services.

A

money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Money performs three important functions:

A

Medium of Exchange
Standard of Value
Store of Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

is a means through which goods and services can be exchanged.

A

medium of exchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

determines the economic worth in the exchange process.

A

A standard of value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

is something that holds its value over time.

A

A store of value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The four physical properties of money:

A

Durability
Portability
Divisibility
Uniformity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The three economic properties of money:

A

Stability of Value
Scarcity
Acceptability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

derives its value from the type of material from which it is composed.

A

Commodity Money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

is paper money back by something tangible- gold or silver- that gives its value.

A

Representative money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The earliest forms of representative money were seen in the

A

MIddle Ages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The value of the U.S. dollar was linked to the value of gold until ______.

A

1971

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Checking accounts are called

A

demand deposits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

is savings accounts, and time deposits that can be converted into cash relatively easily.

A

near money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

_________ accounts, are interest- bearing saving accounts against which drafts may be written.

A

Negotiable order of withdrawal (NOW)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

are funds that people place in a financial institution for a specific period of time in return for a higher interest rate which are often placed in a certificate of deposit (CD)

A

Time deposits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

__________ place restrictions on a number transactions you can make in a month and require you to maintain a certain balance in the account in order to receive higher rate of interest.

A

Money market accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

is the narrowest measure of the money supply, consisting of currency, demand deposits, and other checkable deposits.

A

M1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Modern banking arose in _______ in the late Middle Ages.

A

Italy

24
Q

is the practice of holding only a fraction of the money deposited in a bank and lending the rest.

A

Fractional Reserve Banking

25
Q

was the Secretary of Treasury in 1789

A

Alexander Hamilton

26
Q

The act provided for a national currency backed by ________ bonds and regulated the minimum amount of capital required for national banks a well as the amount of reserves necessary to back the currency.

A

U.S. Treasury

27
Q

In _____, the government officially adopted the gold standard.

A

1900

28
Q

is a system that backs the basic monetary unit with a set amount of gold.

A

gold standard

29
Q

The fed consists of ______ regional banks with a central decision

A

12

30
Q

The ________ provides financial services to the federal government makes loans to banks that serve the public, issues Federal Reserve notes as the national currency, and regulates the money supply to ensure that money retains its purchasing power

A

Federal Reserve Act

31
Q

______ installed reforms such as regulating interest rates that banks could not pay and prohibiting banks from selling stock

A

Banking Act

32
Q

________ provided federal insurance so that if a bank failed people would no longer lose their money

A

Federal Deposit Insurance Corporation

33
Q

The term _______ is used to refer to almost any kind of financial institution that takes in deposits and makes loans helping individuals, businesses, and governments to manage their money

A

bank

34
Q

All financial institutions receive a ______ from the government, either state or federal

A

charter

35
Q

are the oldest form of banking and are the financial institutions most commonly thought of as a bank

A

Privately owned commercial banks

36
Q

_______ were initially established to provide loans to businesses

A

Commercial banks

37
Q

provide a wide range of services, including checking, savings, loans, investment assistance, and credit cards to both businesses and individual consumers

A

Commercial Banks

38
Q

________ led to a wave of mergers and consolidations, reducing the number of commercial banks from over 12,000 in 1990 to about 7,500 in 2005

A

Deregulation

39
Q

_____ insures all commercial banks based in the United States

A

FDIC

40
Q

All national commercial banks belong to the ______.

A

Federal Reserve System

41
Q

The first credit union in the United States began in _______ as state-chartered institutions

A

1909

42
Q

The ________ of 1934 created a system of federally chartered credit unions.

A

Federal Credit Union Act

43
Q

Most credit unions have deposits insurance through the _______ an organization similar to the FDIC. The major difference between credit unions and other financial institutions is that credit unions have membership requirements.

A

National Credit Association

44
Q

_______ are places where money can be bought and sold.

A

Banks

45
Q

Most common loan a bank makes is a ______

A

mortgage

46
Q

A _______ is a contract a corporation issues that promises to repay borrowed money, plus interest, on a fixed schedule.

A

bond

47
Q

______ has changed the way customers use banks,producing a system generally referred to as electronic banking.

A

technology

48
Q

________ are the oldest and most familiar of the developments in electronic banking.

A

ATMs

49
Q

Debit cards are sometimes called

A

check cards

50
Q

Store valued cards are sometimes called _____.

A

prepaid cards

51
Q

________ is a crime in which one person fraudulently uses another’s identity to obtain credit or to access financial accounts. Can be accomplished easily and there is little risk of getting caught.

A

Identity theft

52
Q

_______ is the measure of your dependability to repay a loan.

A

Creditworthiness

53
Q

______ is a measure of your financial responsibility.

A

Character

54
Q

_______ is a measure of a consumer’s ability to repay a debt on time.

A

Capacity

55
Q

A person’s record of paying bills and debts over time is one’s ________.

A

credit history

56
Q

________ is based off making payments on time, current debt, other credit history, recent applications for credit, and type of credit used.

A

Credit Rating

57
Q

______ is a system that assigns a number, or score, to each consumer indicating whether this person is a good or bad credit risk.

A

Credit Scoring

Money (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions