vocab unit 5 Flashcards
An economy based on the direct trade of goods and services.
Barter economy
Money that has value because the item used as money has an intrinsic value.
commodity money
Money that has value simply because some government, institution or business says that it does.
fiat money
An item that is acceptable as payment in the trade of a good or service.
medium of exchange
An item that is used to compare the monetary worth of different goods and services.
standard of value
An item that retains its monetary worth over time.
store of value
Bank accounts that allow the owner easy access to the held money.
demand deposit accounts
A representative currency whose value is back by gold held by the country.
gold standard
The agency responsible for insuring the deposits within American banks.
FDIC
Bank accounts that give the customer interest on the money deposited.
savings
A type of time deposit giving guaranteed interest over a fixed amount of time, with penalties for early withdrawal.
certificate of deposit
An institution that offers banking services but is owned by those that have deposited money within it.
credit union
Putting money in a variety of investments to decrease risk.
diversification
The idea that investments have no guarantee, and that the investor may lose money.
risk
An investment with a government or business that has a guaranteed payment over a set amount of time.
bond
