money

Question 1

three uses of money

Answer 1

medium of exchange
unit of account
store of value

Question 2

must withstand the physical wear and tear

Answer 2

durability

Question 3

must be easily transferable

Answer 3

portability

Question 4

must be easily divided into smaller denominations

Answer 4

divisibility

Question 5

must be uniform

Answer 5

uniformity

Question 6

more available»> less valuable

Answer 6

limited supply

Question 7

must be able to exchange the objects

Answer 7

acceptability

Question 8

something that keeps its value if held

Answer 8

store of value

Question 9

objects that have value because the holder can exchange them for something else of value

Answer 9

representative money

Question 10

money that has value because the government says it’s acceptable for paying debts

Answer 10

fiat money

Question 11

anything that is used to determine value during the exchange of goods and services

Answer 11

medium of exchange

Question 12

exchange of one set of goods and services relative to eachother

Answer 12

unit of account

Question 13

anything used as a medium of exchange, a unit of account, and a store of value

Answer 13

money

Question 14

objects that have value in themselves as well as for their use as money

Answer 14

commodity money

Question 15

what were the first two attempts to centralize US banking and when were they in operation

Answer 15

the first bank of the US (1791-1811)

the second bank of the US (1816-1832)

Question 16

what problems were associated with the free banking era (1837-1863), dominated by state-chartered banks

Answer 16

bank runs and panics, wildcat banks, fraud, and many different currencies

Question 17

how did the national banking acts of 1863 and 1864 promote stability

Answer 17

gave the federal gov power to charter banks

Question 18

stabilized the currency and gave the public confidence by setting a value of gold per dollar by requiring gov to issue only as much currency as the amount of gold in the treasury

Answer 18

gold standard

Question 19

how did the federal reserve system, established in 1913, begin to manage the money supply

Answer 19

regional federal reserve banks stored some of their member banks cash reserves

Question 20

what guarantee was made available to bank customers in 1933

Answer 20

insured individual deposits of up to $2500 if a bank fails

Question 21

the gov could only issue currency if it had gold in the treasury to back it

Answer 21

gold standard

Question 22

paper currency printed with green ink that was issued by the US treasury during the civil war but not backed by gold or silver

Answer 22

greenback

Question 23

receives , keeps , and lends money

Answer 23

bank

Question 24

the nations central banking system

Answer 24

federal reserve system

Question 25

5 services that banks offer

Answer 25

``` storing money saving money loans credit cards simple and compound interest ```

Question 26

describe 4 types of financial institutions

Answer 26

commercial banks savings and loan associations savings banks credit unions

Question 27

all the money available in the US economy

Answer 27

money supply

Question 28

the ability to be used as, or directly converted to cash

Answer 28

liquidity

Question 29

the money in checking accounts

Answer 29

demand deposit

Question 30

a fund that pools money from small savers to purchase short term gov and corporate securities

Answer 30

money market mutual fund

Question 31

a banking system that keeps only a fraction of funds on hand and lends out the remainder

Answer 31

fractional reserve banking

Question 32

failure to pay back a loan

Answer 32

default

Question 33

a specific type of loan that is used to buy real estate

Answer 33

mortgage

Question 34

a card entitling it’s holder to buy goods and services

Answer 34

credit card

Question 35

the price paid for the use of borrowed money

Answer 35

interest

Question 36

a card used to withdraw money

Answer 36

debit card

Question 37

person or institution to whom money owned

Answer 37

creditor

Question 38

what you fill out to put check into account

Answer 38

deposit slip

Question 39

what three things should you be aware of when balancing your checkbook

Answer 39

outstanding checks outstanding deposit account fees

Question 40

spending and savings plan based on estimating your income and expenses

Answer 40

budgeting

Question 41

money before taxes are taken out

Answer 41

gross income

Question 42

money after taxes are taken out

Answer 42

net income

Question 43

not going away | ex. mortgage

Answer 43

fixed expense

Question 44

changes | ex. water

Answer 44

flexible expense

Question 45

leftover money incase of emergency

Answer 45

emergency fund

Question 46

things gov did to make counterfeiting more difficult

Answer 46

``` offcenter the portrait put watermark in bills 5 and up color shifting ink put security strip in micro printing ```

Question 47

who investigates counterfeiting

Answer 47

secret service

Question 48

what do the 7 board of goveners control

Answer 48

interest rates inflation money and supply

Question 49

branch that protects all of us when money runs out

Answer 49

FDIC

Question 50

oversee banking industry in our country

Answer 50

FCC

Question 51

taking your resources and redirecting them to higher prices

Answer 51

invest

Question 52

helps you find out how quickly your money will double | interest rate/72

Answer 52

rule of 72

Question 53

when your interest earns interest

Answer 53

compound interest

Question 54

the riskier the investment, the higher/ lower the ceiling

Answer 54

risk

Question 55

helps you to save your money

Answer 55

financial planner

Question 56

picture of all types of investments

Answer 56

portfolio

Question 57

economic indicator of 30 largest companies in america and how they are doing

Answer 57

dou jones industrial average

Question 58

methods to invest money

Answer 58

``` play the stock market diversification buying land rental properties bonds treasury bond municipal bond junic bonds ```

Question 59

choose different types of stocks

Answer 59

diversification

Question 60

keeps track of stocks for top 500 companies

Answer 60

S and P 500 | standard and pores

Question 61

take a long time to mature | backed by US gov

Answer 61

bonds

Question 62

bought in larger amounts

Answer 62

treasury bond

Question 63

used for larger projects

Answer 63

municipal bond

Question 64

more risky bond

Answer 64

junic bonds

Question 65

6 month- 5 year programs

Answer 65

certificates of deposit

Question 66

money taken out of paycheck

Answer 66

mutual funds

Question 67

overall return you get

Answer 67

capital gains

Question 68

what you had lost

Answer 68

capital loss