Unit 4 Test Review Flashcards

(27 cards)

1
Q

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

A

money

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2
Q

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

A

medium of exchange

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3
Q

the direct exchange of one set of goods or services for another

A

barter

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4
Q

a means for comparing the values of goods and service

A

unit of account

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5
Q

coins and paper bills used as money

A

currency

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6
Q

Three Uses of Money

A

medium of exchange
unit of account
store of value

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7
Q

Six Characteristics of Money

A
Durability
Portability
Divisibility
Uniformity
Limited Supply
Acceptability
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8
Q

objects that have value in themselves and that are also used as money

A

commodity money

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9
Q

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

A

representative money

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10
Q

money that has value because the government has ordered that it is an acceptable means to pay debts

A

fiat money

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11
Q

Three Sources of Money’s Value

A

commodity money
representative money
fiat money

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12
Q

an institution for receiving, keeping, and lending money

A

bank

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13
Q

a bank chartered, or licensed by the national government

A

national bank

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14
Q

widespread panic in which great numbers of people try to redeem their paper money

A

bank run

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15
Q

Four problems that arose as a result of the Free Banking Era

A

bank runs
wildcat banks
fraud
many different currencies

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16
Q

paper currency issued during the Civil War

17
Q

a monetary system in which paper money and coins are equal to the value of a certain amount of gold

A

gold standard

18
Q

the nation’s central banking system

A

Federal Reserve System

19
Q

bank that can lend to other banks in times of need

20
Q

bank that belongs to the Federal Reserve System

21
Q

the national currency we use today in the United States

A

Federal Reserve note

22
Q

the severe economic decline that began in 1929 and lasted for more than a decade

A

Great Depression

23
Q

the government agency that insures customer deposits if a bank fails

A

Federal Deposit Insurance Corporation

24
Q

Causes of the Savings and Loan Crisis

A

Deregulation
High interest rates
Bad loans
Fraud

25
all the money available in the United States economy
money supply
26
the ability to be used as, or directly converted to, cash
liquidity
27
the money in checking accounts
demand deposit