Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
two traders are willing to exchange their products directly
|
Double Coincidence of Wants
|
|
|
Anything that is generally accepted in exchange for goods and services. (Money fulfills three important functions: a medium of exchanges, a unit of account, and a store of value)
|
Money
|
|
|
Anything that facilitates trade by being generally accepted by all parties in payment for goods or services
|
Medium of Exchange
|
|
|
Anything that serves both as money and as a commodity; money that has intrinsic value
|
Commodity Money
|
|
|
a common unit for measuring the value of each good or service
|
Unit of Account
|
|
|
Anything that retains its purchasing power over time
|
Store of Value
|
|
|
People tend to trade away inferior money and hoard the best. [bad money drives out good—debasing the coinage]
|
Gresham’s Law
|
|
|
The difference between the face value of money and the cost of supplying it: the “profit” from issuing money
|
Seigniorage
|
|
|
Money whose face value exceeds its cost of production
|
Token Money
|
|
|
a written order instructing the bank to pay someone from an amount deposited
|
Check
|
|
|
Only a portion of bank deposits is back by reserves
|
Fractional Reserve Banking System
|
|
|
originally, papers promising a specific amount of gold and silver to anyone who presented them to issuing banks for redemption; today, Federal Reserve notes are more mere paper money
|
Bank Notes
|
|
|
bank notes that exchange for a specific commodity, such as gold
|
Representative Money
|
