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25 Cards in this Set
- Front
- Back
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Savings-investment Process
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Involves the direct or indirect transfer of individual savings to business firms in exchange for their securities.
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Money
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Anything that is generally accepted as payment.
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Medium of Exchange
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The basic function of money
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Barter
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Exchange of goods or services without using money.
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Store of Value
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Money held for some period of time before it is spent.
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Liquidity
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How easily an asset can be exchanged for money.
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State of Value
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A function of money that occurs when prices and debts are stated in terms of the monetary unit.
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Individual Net Worth
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Sum of an individual's money, real assets, and financial assets less the individual's debt obligations.
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Bimetallic Standard
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Monetary standard based on two metals, usually silver and gold.
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Full-bodied Money
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Coins that contain the same value in metal as their face value.
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Token Coins
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Coins containing metal of less value than their stated value.
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Representative Full-Bodied Money
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Paper money fully backed by a precious metal.
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Fiat Money
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Legal tender proclaimed to be money by law.
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Credit Money
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Money worth more than what it is made of.
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Automatic Transfer Service (ATS) Accounts
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Provides for direct deposits to, and payments from, checkable deposit accounts.
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Debit Cards
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Provide for immediate direct transfer of deposit amounts.
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M1 Money Supply
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Consists of currency, traveler's checks, demand deposits, and other checkable deposits.
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M2 Money Supply
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M1 plus highly liquid financial assets including savings accounts, small time deposits, and retail money market mutual funds.
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Money Market Mutual Funds (MMMFs)
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Issues shares to customers and invests the proceeds in highly liquid, very short maturity, interest-bearing debt instruments.
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M3 Money Supply
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M2 plus large time deposits and institutional money market mutual funds.
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Credit Cards
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Provide predetermined credit limits to consumers when the cards are issued.
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Gross Domestic Product (GDP)
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Measures the output of goods and services in an economy.
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Velocity of Money
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The rate of circulation of the money supply.
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Inflation
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A rise in prices not offset by increases in quality.
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Currency Exchange Rate
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Value of one currency relative to another.
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