Unit 4 Chapter 10

Question 1

money

Answer 1

anything that serves as a medium of exchange, a unit of account, and a store of value

Question 2

medium of exchange

Answer 2

anything that is used to determine value during the exchange of goods and services

Question 3

barter

Answer 3

the direct exchange of one set of goods or services for another

Question 4

unit of account

Answer 4

a means for comparing the values of goods and services

Question 5

store of value

Answer 5

something that keeps it’s value if it is stored rather than used

Question 6

currency

Answer 6

coins and paper bills used as money

Question 7

commodity money

Answer 7

objects that have value in themselves and that are also used as money

Question 8

representative money

Answer 8

objects that have value because the holder can exchange them for something else of value

Question 9

fiat money

Answer 9

money that has value because the government has ordered that it is an acceptable means to pay debts

Question 10

bank

Answer 10

an institution for receiving, keeping, and lending money

Question 11

national bank

Answer 11

a bank chartered, or licensed, by the national government

Question 12

bank run

Answer 12

widespread panic in which great numbers of people try to redeem their paper money

Question 13

greenback

Answer 13

paper currency issued during the Civil War

Question 14

gold standard

Answer 14

a monetary system in which paper money and coins are equal to the value of a certain amount of gold