ch 14 macroeconomics

  1. Barter
    The indirec exchange of one good or service for another good or service, rather than for money
  2. Money
    Anything that serves as a medium of exchange, unit of account, and store of value.
  3. Medium of exchage
    The primary function of money to be widely accepted in exchage for goods and services.
  4. Unit of account
    The function of money to provide a common measurement of the relative value of goods and services.
  5. Store of value
    The ability of money to hold value over time.
  6. Commodity money
    Anything that serves as money while having market value in other uses.
  7. Fiat money
    Money accepted by law and not because of its redeemability or instrict value.
  8. M1
    The narrowest definition of the money supply. It includes currency and checkable deposits.
  9. Currency
    Money, including coins and paper money.
  10. Checkable deposits
    The total of checking accounts balances in financial institutions convertible to corrency "on demand" when a check is writting without advance notice.
  11. M2
    The definition of the money supply that equals M1 plus near monies, such as savings deposits and small time deposits of less than $100,000
  12. Federal Reserve System
    The 12 central banks that service banks and other financial institutions within each of the Federal Reserve districs; popularity called the Fed.
  13. Board of Governos of the Federal Reserve System
    The 7 members appointed by the president and confirm by the US Senate who serve for one nonrenewable 14-year term. Their responsability is to supervise and control the money supply and the banking system in the US
  14. Federal Open Market Committee. FOMC
    The Federal Reserve's committee that directs the buying and selling of US goverment securities, which are major instruments for controlling the money supply. The FOMC consist of the 7 members of the Fed's Board of Governos, the president of the New York Federal Reserve Bank, and the presidents of 4 others Federal Reserve distric banks.
  15. Monetary Control Act
    A law, formally titled the Depository Institutions Deregulation and Money Control Act of 1980, that gave the Fed greater control over nonmembers banks and made all financial institutions more competitive.
Card Set
ch 14 macroeconomics