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Economics
Economics Chapter Ten
Term | Definition |
---|---|
money | anything that serves as a medium of exchange, a unit of account, and a store of value |
medium of exchange | anything that is used to determine value during the exchange of goods and services |
barter | the direct exchange of one set of goods or services for another |
unit of account | a means for comparing the values of goods and services |
store of value | something that keeps its value if it is stored rather than spent |
currency | coins and paper bills used as money |
commodity money | objects that have value in and of themselves and that are also used as money |
representative money | objects that have value because the holder can exchange them for something else of value |
specie | coined money, usually gold or silver, used to back paper money |
fiat money | objects that have value because a government has decreed that they are an acceptable means to pay debts |
bank | an institution for receiving, keeping, and lending money |
national bank | a bank chartered by the federal government |
bank run | a widespread panic in which many people try to redeem their paper money at the same time |
greenback | a paper currency issued during the Civil War |
gold standard | a monetary system in which paper money and coins had the value of certain amounts of gold |
central bank | a bank that can lend to other banks in time of need |
member bank | a bank that belongs to the Federal Reserve System |
foreclosure | the seizure of property from borrowers who are unable to repay their loans |
money supply | all the money available in the United States economy |
liquidity | the ability to be used as, or directly converted into, cash |
demand deposit | money in a checking account that can be paid out "on demand" or at any time |
money market mutual | a fund that pools money from small savers to purchase short-term government and corporate securities |
fractional reserve banking | a banking system that keeps only a fraction of its funds on hand and lends out the remainder |
default | failing to pay back a loan |
mortgage | a specific type of loan that is used to buy real estate |
credit card | a card entitling its owner to buy goods and services based on the owner's promise to pay for those goods and services |
interset | the price paid for the use of borrowed money |
principal | the amount of money borrowed |
debit card | a card used to withdraw money from a bank account |
creditor | a person or institution to whom money is owed |