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25 Cards in this Set

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