Chapter Ten Vocabulary: Money and Banking 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 call 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 of 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 is 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 people try to redeem their paper money
Greenback
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 nation’s 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 server economic decline that began in 1929 and lasted for more than a decade
Federal Deposit Insurance Corporation (FDIC)
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
