Chapter 10 Flashcards Preview

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Flashcards in Chapter 10 Deck (11):
1

money

anything people will accept as a medium of exchange

2

medium of exchange

means through which products can be exchanged

3

barter

exchanging goods or services for other goods or services

4

physical properties of money

durability, portability, divisibility, uniformity

5

economic properties of money

stability of value, scarcity, acceptability

6

commodity money

value based on material from which it is made

7

representative money

paper money backed by something tangible

8

fiat money

declared by government to have value, accepted by citizens

9

demand deposits

checking accounts, funds become currency on demand

10

near money

savings accounts, time deposits, finds become cash easily

11

what was the first bank in the US and who created it?

First Back of the United States (1791) created by Alexander Hamilton