The Orgins of Money Flashcards
1
Q
barter economy
A
An economy in which trades are made in goods and services instead of money
2
Q
transaction costs
A
The costs associated with the time and effort needed to search out, negotiate, and complete an exchange
3
Q
money
A
A good that is widely accepted in exchange and in the repayment of debt
4
Q
medium of exchange
A
Anything that is generally acceptable in exchange for goods and services
5
Q
unit of account
A
A common measurement used to express value
6
Q
store of value
A
something with the ability to hold value over time
7
Q
fractional reserve banking
A
A banking arrangement in which banks hold only a fraction of their deposits and lend out the remainder
