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