30 terms

Penny Candy Vocab

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Clad
A coin made of different metals.
Fine Silver
The purity of a precious metal
Base Metal
A non-precious metal like copper or nickel
Token
A disk of base metal which can be used as a substitute for a coin
Double Digit Inflation
Prices increases rising at 10 to 99 percent per year due to inflation
Welfare Program
A government program for giving away money or goods, usually to poor people
Subsidy
A government program tax money away, usually to rich people or large companies
Law of Economics
An unchanging fact of life which deals with production and distribution of wealth.
Tanstaafl
Almost nothing is free, someone must pay for it
Counterfeiting
To make something that is fake or phonylly overvalued money.
Clipping
Shaving the edges of a coin in order to get some of the precious metal from the coin
Reeding
The notches on the edge of a coin
Debasing
Reducing the value of a coin by reducing the amount of precious metal in it.
Gresham's Law
Bad money drives good money out of circulation. People hoard good money and trade with legally overvalued money.
Law of supply and demand
When the supply of something goes up, the price per unit of that thing goes down
Inflation
An increase in the amount of money which causes the money to lose value, so the prices rise
Dollar
A one-ounce ingot of silver
Money
The most easily traded thing in a society
Coin
A wafer or disk of precious metal
Hallmark
The mint-mark of a coin which tells who made the coin
Banknote
Today, it is paper money. Originally, it was an IOU from a bank
Legal Tender Law
A law which provides for the punishment of anyone who refuses to accept the legal tender money
Fiat Money
Legal tender money
Runaway Inflation
When prices rise rapidly, every few hours.
Depression
The correction period following an inflation.
Recession
The beginning of a depression that never went all the way.
Deflation
A decrease in the ammount of money.
Velocity
The speed at which money changes hands.
Demand for Money
The desire to hold money rather than trade it.
Business Cycle
Prosperity followed by recession followed by prosperity followed by recession, and so forth.