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24 Cards in this Set
- Front
- Back
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medium of exchange, unit of account & store of value
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3 uses of money
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durability, portability, divisibility, uniformity, scarcity, & acceptibility
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6 characteristics of money
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anything used to determine value during exchange of goods & services
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medium of exchange
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a means for comparing the values of goods & services
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unit of account
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keeping its value if you decide to hold on to-or store-it instead of spending it
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store of value
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money must withstand the physical wear and tear of being used over and over again
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durability
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money must be easily carried and transferred from one person to another
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portability
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money must be easily divided into smaller denominations, or units of value
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divisibility
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any two units of money must be uniform-the same- in terms of what they will buy
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uniformity
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money must have limited supply of circulation
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scarcity
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money should be accepted in confidence of its value
( Fiat money is government backed ) |
acceptability
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the direct exchange of one good/service for another w/o use of money
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bartering
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coins and paper money
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currency
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illegally reproduced; fake
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counterfeit
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unit of value
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denomination
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the value of all currency & checking account balances in a country
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money supply
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a checking account
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demand deposit account
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a situation in which many banks fail because they are not able to meet the demands of their depositors for cash
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bank panic
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the name of the central bank of the United States
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Federal Reserve System / Federal Reserve Bank / Federal Reserve / Fed
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a bank whose functions include controlling the nation's money supply
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central bank
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the process in which the Federal Reserve transfers checks and money between banks
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check clearing
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a bank that probides checking accounts, and makes loans for a variety of purposes
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commercial bank
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a kind of bank that is owned by memebers who belong to a certain company or group
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credit union
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a corporation that insures bank deposits up to $100,000.
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Federal Deposit Insurance Corporation (FDIC)
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