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