33 terms

Chapter 10 - Economics

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Terms in this set (...)

fiat money
money that has value cause the government has ordered that it is an acceptable means to pay debts
bank
an instituition for recieving, keeping, and and lending money
national bank
a bank chartered, or licensed, by the national government
greenbacks
paper currency issued during the Civil War
gold standard
a monetary system in which paper money and coins are equal to the value of a certain amount of gold
federal reserve system
the nation's central banking system
central bank
bank that can lend to other banks in time of need
member bank
bank that belongs to the federal reserve system
federal reserve notes
national currency we use in the united states today
depression
severe economic decline that began and lasted for a decade
federal deposit insurance corporation
government agency that insures customers deposits if a bank fails
money supply
all the money available in the united states
liquidity
ability to be used as, or directly converted, to cash
demand deposit
money in checking accounts
money market mutual funds
a fund that pools money from small savers to purchase short-term government and corporate securities
fractional reserve banking
banking system that keeps only a fraction of funds on hand and lends out the remainder
defult
failure to pay back a loan
mortgage
specific type of loan used for real estate
credit card
card entitling its holder to buy good and services based on the holders promise to pay for them
interest
price paid for the use of borrowed money
principal
amount of money borrowed
debit cards
used to withdraw money
creditor
person or institution to whom money is owned
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
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 used
currency
coins and paper bills used as money
commodity money
objects that have value in 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.
six characteristics of money
durability, portability, divisibility, uniformity, limited supply, and acceptability
types of financial institutions
commercial banks, savings and loan associations, savings banks, credit unions, and finance companies