-
Money
Anything that serves as a medium of exchange, a unit of account, and a tore of value.
-
Medium of Exchange
Anything that is used to determine value during the exchange of goods and services.
-
Barter
The 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.
-
Fiat Money
Money that has value because the government has ordered that it is an acceptable means to pay debts.
-
Bank
An institution for receiving , keeping, and lending money.
-
National Bank
A bank chartered, or licensed, by the national government.
-
Bank Run
Widespread panic in which great numbers of people try to redeem their paper money.
-
Greenback
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 times of need.
-
Member Bank
Bank that belongs to the Federal Reserve System.
-
Federal Reserve Note
The national currency we use today in the United States.
-
Great Depression
The severe economic decline that began in 1929 and lasted for more than a decade.
-
Federal Deposit Insurance Corporation (FDIC)
The government agency that insures customer deposits if a bank fails.
-
Money Supply
All the money available in the United States economy.
-
Liquidity
The ability to be used as, or directly converted to, cash.
-
Demand Deposit
The money in checking accounts.
-
Money Market Mutual Fund
A fund that pools money from small savers to purchase short-term government and corporate securities.
-
Fractional Reserve Banking
A banking system that keeps only a fraction of funds on hand and lends out the remainder.
-
Default
Failure to pay back a loan.
-
Mortgage
A specific type of loan that is used to buy real estate.
-
Credit Card
A card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.
-
Interest
The price paid for the use of borrowed money.
-
Principal
The amount of money borrowed.
-
Debit Card
A card used to withdraw money.
-
Creditor
Person or institution to whom moey is owed.
|
|