Econ Chpt 10 Vocab Quiz

  1. Money
    Anything that serves as a medium of exchange, a unit of account, and a tore of value.
  2. Medium of Exchange
    Anything that is used to determine value during the exchange of goods and services.
  3. Barter
    The direct exchange of one set of goods or services for another.
  4. Unit of Account
    A means for comparing the values of goods and services.
  5. Store of Value
    Something that keeps its value if it is stored rather than used.
  6. Currency
    Coins and paper bills used as money.
  7. Commodity Money
    Objects that have value in themselves and that are also used as money.
  8. Representative Money
    Objects that have value because the holder can exchange them for something else of value.
  9. Fiat Money
    Money that has value because the government has ordered that it is an acceptable means to pay debts.
  10. Bank
    An institution for receiving , keeping, and lending money.
  11. National Bank
    A bank chartered, or licensed, by the national government.
  12. Bank Run
    Widespread panic in which great numbers of people try to redeem their paper money.
  13. Greenback
    Paper currency issued during the civil war.
  14. Gold Standard
    A monetary system in which paper money and coins are equal to the value of a certain amount of gold.
  15. Federal Reserve System
    The nation's central banking system.
  16. Central Bank
    Bank that can lend to other banks in times of need.
  17. Member Bank
    Bank that belongs to the Federal Reserve System.
  18. Federal Reserve Note
    The national currency we use today in the United States.
  19. Great Depression
    The severe economic decline that began in 1929 and lasted for more than a decade.
  20. Federal Deposit Insurance Corporation (FDIC)
    The government agency that insures customer deposits if a bank fails.
  21. Money Supply
    All the money available in the United States economy.
  22. Liquidity
    The ability to be used as, or directly converted to, cash.
  23. Demand Deposit
    The money in checking accounts.
  24. Money Market Mutual Fund
    A fund that pools money from small savers to purchase short-term government and corporate securities.
  25. Fractional Reserve Banking
    A banking system that keeps only a fraction of funds on hand and lends out the remainder.
  26. Default
    Failure to pay back a loan.
  27. Mortgage
    A specific type of loan that is used to buy real estate.
  28. 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.
  29. Interest
    The price paid for the use of borrowed money.
  30. Principal
    The amount of money borrowed.
  31. Debit Card
    A card used to withdraw money.
  32. Creditor
    Person or institution to whom moey is owed.
Card Set
Econ Chpt 10 Vocab Quiz
Words and defs for Econ Chpt 10 Vocab Qiz.