chapter 13 vocab Flashcards
(16 cards)
any item that sellers accept as payment for goods and services
medium of exchange
money provides people with a way to measure the relative vale of goods and services by comparing their prices
standard of value
a characteristic of medium of exchange that allows it and thus value or wealth to be stored
store of value
an item that has a value of its own and that also is used as money
commodity money
an item that has value because it can be exchanged for something else of value
representative money
money in the form of coins. Gold silver
specie
money that is not backed by gold or silver but has value because a government requires that it be accepted as a medium of exchange
fiat money
coins and paper bills
currency
an asset that can be easily converted into cash when needed
near money
a monetary system in which paper money and coins carry the value of a specified amount of gold
gold standard
lend money, accept deposits, and transfer money among businesses, other banks and financial institutions, and individuals
commercial bank
established to lend money and accept deposits
savings and loan associations
set up to serve people who wished to make small deposits that large commercial banks did not want to handle
mutual savings banks
a buyer pays for goods by using a card
debit card
the reduction of government restrictions
deregulation
the failure to make a payment on loans
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