Create an account
money whose value is determined by its value as a material such as the value of gold used in jewelry; also called full-bodied money
Divisia monetary aggregate
a weighted average of the components of M1, M2, and M3, with the weights depending on the interest rates of the accounts
money has value mainly because the government decrees that it has value for payment of taxes
a very high rate of inflation, often taken to be 50 percent per month (13,000 percent per year) or higher
how easy it is to buy or sell a security in the secondary market where you want to without incurring significant costs; how quickly and easily a type of money can be used to purchase goods and services
the federal reserve's measure of money consisting of coins, paper currency, amounts in checking accounts, and traveler's checks
the federal reserve's measure of money consisting of M1 plus amounts in savings accounts, money-market mutual funds (held by individuals), and small time deposits (under $100,000)
money created by the government or by nature, not by groups or institutions in the private sector
the mechanisms by which cash, checks, and electronic payments flow from buyers to sellers; equivalently, the set of mechanisms used for making transactions
standard of deferred payment
the function that money serves when people buy something one day and pay for it later, and the repayment is denoted in terms of money
store of value
the function that money serves when people keep money for some period instead of spending it or investing it
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