Chapter 10 Vocabulary Flashcards
(32 cards)
Money
Anything that serves as a medium of exchange, a unit of account, and a store of value.
Medium of exchange
Anything that is used to determine value during the exchange of goods and services.
Barter
The direct exchange of one set of goods or services for another.
Unit of account
A means for comparing the values of goods and services.
Store of value
Something that keeps its value if it is stored rather than used.
Currency
Coins and paper bills used as money.
Commodity money
Objects that have value in themselves and that are also used as money.
Representative money
Objects that have value because the holder can exchange them for something else of value.
Fiat money
Money that has value because the government has ordered that it is an acceptable means to pay debts.
Bank
An institution for receiving, keeping, and lending money.
National bank
A bank chartered, or licensed, by the national government.
Bank run
Widespread panic in which great numbers of people try to redeem their paper money.
Green back
Paper currency issued during the Civil War.
Gold standard
A monetary system in which paper money and coins are equal to the value of a certain amount of gold.
Federal reserve system
The nations central banking system.
Central bank
Bank that can lend to other banks in times of need.
Member bank
Bank that belongs to the federal reserve system.
Federal reserve note
The national currency we use today in the United States.
Great Depression
The severe economic decline that began in 1929 and lasted for more than a decade.
Federal Deposit Insurance Corporation
The government agency that insures customer deposits if a bank fails.
Money supply
All the money available in the United States economy.
Liquidity
The ability to be used as, or directly converted to, cash.
Demand Deposit
The money in checking accounts.
Money market mutual fund
A fund that pools money from small savers to purchase short term government and corporate securities.
