Money and Finance Flashcards
Barter System
system of directly exchanging goods and services without a medium of exchange
3 purposes of money
- medium of exchange
- store of value
- unit of account
Bitcoin
non-issued and decentralized currency usually used for speculative profit
Gold Standard
dollars are redeemable for a specific amount of gold
Confidence
The belief in money makes it valuable and not the redeemable gold
Lenders
people who invest money with interest in order to make a profit
Borrowers
people who borrow money with the intention to pay interest
Governments
borrow money because they’re spending more than their revenue
Financial System
a network of institutions, markets, and contracts that brings lenders and borrowers together
Stock
ownership of a company
Equity
the difference between the value of the assets/interest and the cost of the liabilities of something owned
Financial institutions
an establishment that conducts financial transactions such as investments, loans, and deposits
