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32 Cards in this Set
- Front
- Back
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Money
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anything that serves as a medium of exchange, a unit of account, and a store of value
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Medium of Exchange
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anything that is used to determine value during the exchange of goods and services
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Barter
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the direct exchange of one set of goods or services for another
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Unit of Account
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a means for comparing the values of goods and services
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Store of Value
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something that keeps its value if it is stored rather than used
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Currency
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coins and paper bills used as money
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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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objects that have value because the holder can exchange them for something else of value
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Fiat Money
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money that has value because the government has ordered that is an acceptable means to pay debts
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Bank
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an institution for receiving, keeping, and lending money
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National Bank
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a bank chartered, or licensed, by the national government
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Bank Run
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widespread panic in which great numbers of people try to redeem their paper
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Greenback
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paper currency issued during the Civil War
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Gold Standard
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a monetary system in which paper money and coins are equal to the value of a certain amount of gold
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Federal Reserve System
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the nation's central banking system
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Central Bank
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bank that can lend to other banks in times of need
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Member Bank
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bank that belongs to the Federal Reserve System
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Federal Reserve note
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the national currency we use today in the United States
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Great Depression
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the severe economic decline that began in 1929 and lasted for more than a decade
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Federal Deposit Insurance Corporation (FDIC)
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the government agency that insures customers deposits if a bank fails
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Money Supply
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all the money available in the United States economy
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Liquidity
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the ability to be used as, or directly converted to, cash
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Demand Deposit
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the money in checking accounts
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Money Market Mutual Fund
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a fund that pools money from small savers to purchase short-term government and corporate securities
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Fractional Reserve Banking
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a banking system that keeps only a fraction of funds on hand and lends out the remainder
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Default
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failure to pay back a loan
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Mortgage
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a specific type of loan that is used to buy real estate
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Credit Card
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a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services
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Interest
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the price paid for the use of borrowed
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Principal
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the amount of money borrowed
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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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