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36 Cards in this Set
- Front
- Back
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money
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anything that serves as a medium of exchange
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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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what are three uses of money
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medium of exchange, a unit of account, and a store of value
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what are the 6 characteristics of money
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Durability, portability, divisibility, uniformity, limited supply, acceptability
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bank
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institution for receiving, keeping and lending money
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anti-federalists
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against a strong central government, favored leaving powers in the hands of the states including banking
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4 main problems with free banking
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bank runs/panic, wilcat banks, fraud, and many different currencies
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Federal Reserve System (FED)
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mations central banking system
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Federal deposit Insurance Corporation (FDIC)
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government agency that insured customer deposits if a bank fails
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national bank
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a bank chartered, or licensed, by the national government
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greenbacks
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official name of the currency
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gold standard
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a monetary sysem in which paper money and coins are equal to the value of a certain amount of gold
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central bank
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bank that can lend to other banks in time of need
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member banks
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banks that belong to the fed-stored some of their cash reserves at the federal reserve bank in their district
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Federal Reserve notes
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national currency we use today in the united states
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Great Depression
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severe economic decline that began i n1929 and lasted more than a decade
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bank run
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widespread panic in which great numbers of people try to redeem their paper money
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money supply
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all the money available in the United States economy
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default
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failure to pay back a loan
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liquidity
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ability to be used as or directly converted into cash
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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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demand deposit
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the money in checking accounts
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credit card
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a card entitlin
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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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interest
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the price paid for the use of borrowed money
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principal
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the amount of money borrowed
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M1
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assets that have liquidity
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debit card
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a card used to withdraw money
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fractionl 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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creditor
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person or institution to whom money is owed
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M2
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all of the assets in M1, plus deposits in savings accounts and money market mutual funds
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Automated Teller Machines (ATM's)
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use ATM's to deposit money, withdraw cash, and obtain account information
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