Chapter 10 Flashcards
The direct exchange of one set of goods or services for anther
Barter
Something that keeps it’s value if it’s stored rather than used
Store of value
Coins and paper bills used as money
Currency
Objects that have a value because the government has ordered that it is a acceptable means to pay debts
Flat money
Objects that have value because the holder can exchange them for something else of value
Representative money
An institution for receiving keeping and lending money
Bank
Nations central bank
Federal reserve system
The government agency that insures customer deposited if a bank fails
fed deposits insurance corp
Ability to be used as or directly converted to cash
Liquidity
Market in which money is lent for periods less than a year
Money market
Specific type of loan that is used to but real estate
Mortgage
Card entitling it’s holder to buy goods and services based of the holders promise to pay for these goods and services
Credit card
The price paid for the Use of borrowed money or money earned by deposit funds
Interest
Amount of money borrowed
Principal
Person or institution to whom money is owed
Creditor
Anything that serves as a medium of exchange, unit of account and store of value
Money
