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26 Cards in this Set
- Front
- Back
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Durability
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must withstand physical wear & tear.
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portability
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easily carried
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divisibility
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must be easily divided into smaller denominations
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uniformity
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any two units of money must be the same in terms of what they can buy .
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*limited supply
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otherwise would not be valuable & would be worthless.(main characteristic)
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accepted
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must be able to be exchanged.
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Commodity Money
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objects that have value in themselves and that are also used as money.
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representative money
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object that have value b/c the holder can exchange them for something else of value.
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fiat money
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money that has value b/c the gov't has ordered that's an accepted b/c means to pay debts.
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bank
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an institution for receiving, keeping, learning.
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money
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all the money available in the U.S. economy.
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m1
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money that people can gain to access to easily & immediately to pay for g&s
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liquidity
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the ability to be used as,or directly converted to cash.
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m2
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all the assets in m1+''near money''
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m3
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m1+m2 everything else
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demand deposit
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the money in checking accounts.
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fractional reserve banking
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banking system that keeps only a fraction of funds on hard lends out the remainder.
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default
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fail to payback a loan
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morgage
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a specific type of a loans that's used to by real estate
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foreclosure
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in default of a morgage
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credit cards
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buys goods and services based on the promise to pay for these g/s
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principal
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the amount of money borrowed
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interest
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the price paid for the use of borrowed money
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debit card
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a card used to withdraw money
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creditor
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person or institution to whom money is owed
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the ''m'' in m1 ,2, 3 means a ________
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measurement
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