Economics Vocab and GR Questions

  1. barter economy
    a moneyless economy that relies n trade
  2. money
    any substance that serves as a meduim of exchange, measure of value, and store of value
  3. medium of exchange
    something accepted by all parties as payment for goods and services
  4. measure of value
    a common denominator that can be used to express worth in terms that most individuals understand
  5. store of value
    the property that allows purchasing power to be saved until needed
  6. commodity money
    money that has an alternative use as an economic good
  7. fiat money
    money by government decree
  8. specie
    money in he form of coins made from silver or gold
  9. monetary unit
    standard unit of currency
  10. To be successful mmoney must have what characteristics?
    • Portability
    • Durability
    • Divisibility
    • Limited Availability
  11. monetary standard
    the mechanism designed to keep the money supply portable, durable, divisible, and limited in supply
  12. state banks
    banks that recieved their charter to operate from a state government.
  13. legal tender
    fiat currens that must be accepted in payment for dets.
  14. United States notes
    new federal fiat currency that also had no gold or silver backing.
  15. national banks
    privately owned banks that received their operating charters from the federal government.
  16. National Bank notes or National currency
    paper currency of uniform apperance that was backed by United States government bonds.
  17. gold certificates
    paper currency backed by gold placed on deposit with the United States Treasury.
  18. silver certificates
    paper currency backed silver dollars and bullion placed on reserve with the Treasury.
  19. Treasury coin notes
    paper currency issued by the Treasury that was redeemable in both gold and silver.
  20. Federal Reserve System
    nations first true central bank.
  21. Central bank
    bank that can lendto other banks in times of need.
  22. Federal Reserve notes
    paper currency issued by the Fed that eventually replaced all other types of federal currency
  23. run on the bank
    rush b depositors to withdraw their funds from a bank before it failed.
  24. bank holiday
    brief period during which every bank in the country was required to close.
  25. commercial banks
    banks that catered to the interests of business and commerce
  26. demand deposit accounts DDAs
    accounts whose funds could be removed by swimply 2writing a check without prior approval from the depository institution.
  27. mutual savings bank MSB
    depositor-owned financial orgnization operated only for the benefit of itsw depositors.
  28. savings banks
    banks that are not mutually owned anymore.
  29. NOW accounts
    type of checking account that pays interest.
  30. savings and loan association (S&L)
    depository institution that invests the majority of its funds in home mortgages.
  31. credit union
    nonprofit service cooperative that is owned by, and operated for, the benefit ot it's members.
  32. share draft accounts
    interest earning checking accounts
  33. deregulation
    the removal or relaxation of government restrictions on business.
  34. creditor
    perswon or institution to whom money is owed
  35. FDIC (Federal Deposit Insurance Corporation)
    created to insure customer deposits in the event of bank failure
Card Set
Economics Vocab and GR Questions
Chapter 11