Chapter 10 Vocab Flashcards
(30 cards)
A money less economy that relies on the training/exchange of goods and services
Barter economy
What is the problem with a barter economy
Each person has to have exactly what the other one wants in order to trade.
What must you have an order for a barter economy to work
The two parties must have a mutual coincidence of wants
Money that has an alternative use as an economic good
Commodity money
These goods were used to settle debts and to make purchases as well as consumed goods
Commodity
What was the main source of commodity money use
Tobacco
Money by government degree; it has no alternative value or use as a commodity
Flat money
Give an example of flat money
Paper currency or Wampum (shells)
Money in the form of gold or silver coins
Specie
What was the most desirable form of money
Specie
Why was specie the most desirable form of money
Because of its mineral content and limited supply
What was the most popular coin in the colonies that could be divided into eight Sub parts called bits
Spanish peso
Germans had______ That became monetary unit for USA
Talers
Revolutionary war banks printed $250 million of continental paper currency. What was the result of this
It became worthless and people didn’t trust the government to issue anything except coins
Do US government didn’t authorize the printing of paper currency again until the_______ But only privately owned banks could do it
The Civil War
The new US Constitution left the printing of paper currency up to the individual ______
State banks
They issued their own currency’s but it had to be gold or silver backing
State banks
Created in the Civil War but was not backed by the gold or silver backing and was cheap money
Greenbacks
Currency backed by the government bonds and issued by national Banks
National currency
Banks chartered by the national banking system
National banks
1848 Created a surplus of gold which made the USA go on the gold standard
California gold rush
Currency is backed by and exchange for a specific amount of Gold
Gold standard
1930 US government began to abandon the gold standard and it was not used after 1971
Great depression/ World War II
They created a national Central Bank
Federal reserve
