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22 terms

Fundamental Principles of Money I

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Cash
money or an equivalent, as a check, paid at the time of making a purchase
Credit
time allowed for payment for goods or services obtained on trust:
Debit
an electronic check; an alternative method to cash when making a payment
Electronic Funds Transfer
is the electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems.
Paper Money
currency in paper form, such as government and bank notes, as distinguished from metal currency.
Coins
a piece of metal stamped and issued by the authority of a government for use as money.
Government Bonds
is a debt investment in which an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company. It is issued by the national government in the country's own currency.
Treasury Notes
A marketable U.S. government debt security with a fixed interest rate and a maturity between one and 10 years.
Medium of Exchange
money's most important function; used to facilitate transactions
Unit of Measure
provides a common measure of the value of goods and services being exchanged
Store of Value
money must hold its value over time
wages
money that is paid or received for work or services, as by the hour, day, or week.
salary
a fixed compensation periodically paid to a person for regular work or services.
interest
a sum paid or charged for the use of money or for borrowing money.
rent
to grant the possession and enjoyment of (property, machinery, etc.) in return for the payment of rent from the tenant or lessee. (often fol. by out ).
dividends
a sum of money paid to shareholders of a corporation out of earnings.
capital gains
profit from the sale of assets, as bonds or real estate.
transfer payments
any payment made by a government for a purpose other than that of purchasing goods or services, as for welfare benefits.
gross pay
total pay before any deductions are subtracted
hourly wage
amount earned for each hour worked
standard work day
40 regular hours a week
overtime
time worked beyond the regular hours - pay is 1 1/2 times the regular rate of pay