Money Flashcards
(20 cards)
What is a medium of exchange?
Use of something to facilitate trade.
What is wealth?
An abundance of valuable possessions or money.
What are goods and services?
The output of an economic system. Goods are tangible items sold to customers, while services are tasks performed for the benefit of the recipients.
What is currency?
Money in the form of paper or coins, issued by a government and accepted at face value.
What are commercial banks?
A bank that offers financial services to the general public and to companies.
What is savings?
The money that a person has left over and kept for future use.
What is credit?
1.) The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. 2.) An entry recording a sum received, listed on the right-hand side or column of an account.
What is debit?
An entry recording a sum owed, listed on the left-hand side or column of an account.
What is a greenback?
The first national currency of the United States. The notes, though not redeemable for gold or silver, were lawful money backed by the credit of the federal government to pay for the Civil War.
What is a transaction?
An instance of buying or selling something.
What is fiat money?
Type of currency that is declared legal tender by a government but has no intrinsic or fixed value and is not backed by any tangible asset.
What is debt?
Sum of money that is owed or due.
What is barter?
Exchange (goods or services) for other goods or services without using money.
What is money supply?
The total amount of money in circulation or in existence in a country.
What are reserves?
Money retained for future use, like savings.
What is a central bank?
A national bank that provides financial and banking services for its country’s government and commercial banking system, as well as implementing the government’s monetary policy and issuing currency.
What is inflation?
General increase in prices and fall in the purchasing value of money.
What is deflation?
Reduction of the general level of prices in an economy.
What is the unemployment rate?
The percentage of people in the labour force who have no job.
What is The Fed?
Short name for Federal Reserve Bank or the central bank of the USA.
