chap 10

Question 1

money

Answer 1

is anything that people will accept in exchange for goods and services.

Question 2

medium of exchange

Answer 2

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

Question 3

barter

Answer 3

is the exchange of goods and services without using money.

Question 4

standard of value

Answer 4

determines the economic worth in the exchange process.

Question 5

store of value

Answer 5

is something that holds its value over time.

Question 6

commodity money

Answer 6

has intrinsic value based on the material from which it is made.

Question 7

representative money

Answer 7

is backed by something tangible.

Question 8

flat money

Answer 8

is declared by the government and accepted by citizens to have worth.

Question 9

currency

Answer 9

is paper money and coins.

Question 10

demand deposits

Answer 10

are checking accounts.

Question 11

near money

Answer 11

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

Question 12

state banks

Answer 12

is a bank chartered by a state government.

Question 13

national banks

Answer 13

are banks chartered by the national government.

Question 14

gold standard

Answer 14

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

Question 15

automated teller machine(ATM)

Answer 15

is an electronic device that allows bank customers to make transactions without seeing a bank officer.

Question 16

debit card

Answer 16

can be used like an ATM card or like a check.

Question 17

stored-value card

Answer 17

represents money that the holder has on deposit with the issuer.