Vocabulary List 11
Economics / Mr. Henry
Vocabulary List 11
Economics / Mr. Henry
Federal Reserve System- privately owned,
publicly controlled central bank of the United
States
Federal Reserve System- privately owned,
publicly controlled central bank of the United
States
Commodity Money- money that has an
alternative use as an economic good
Commodity Money- money that has an
alternative use as an economic good
Fiat Money- money by government decree
Fiat Money- money by government decree
Specie- money in the form of gold or silver coins
Specie- money in the form of gold or silver coins
Measure of Value- function of money that allows it
to serve as a common way to express value
Measure of Value- function of money that allows it
to serve as a common way to express value
Store of Value- function of money that allows
people to preserve value for future use
Store of Value- function of money that allows
people to preserve value for future use
M1- component of the money supply relating to
money’s role as a medium of exchange
M1- component of the money supply relating to
money’s role as a medium of exchange
M2- component of the money supply relating to
money’s role as a store of value
M2- component of the money supply relating to
money’s role as a store of value
State Bank- bank that receives its charter from the
state in which it operates
State Bank- bank that receives its charter from the
state in which it operates
Silver Certificate- paper currency backed by, and
redeemable for, silver from 1878 to 1968
Silver Certificate- paper currency backed by, and
redeemable for, silver from 1878 to 1968
Bank Run- sudden rush by depositors to withdraw
all deposited funds, generally in anticipation of
bank failure or closure
Bank Run- sudden rush by depositors to withdraw
all deposited funds, generally in anticipation of
bank failure or closure
Bank Holiday- brief period during which all banks
or depository institutions are closed to prevent
bank runs
Bank Holiday- brief period during which all banks
or depository institutions are closed to prevent
bank runs
Fractional Reserve System-system requiring
financial institutions to set aside a fraction of their
deposits in the form of reserves
Fractional Reserve System-system requiring
financial institutions to set aside a fraction of their
deposits in the form of reserves
Easy Money Policy- monetary policy that results
in lower interest rates and greater access to credit
Easy Money Policy- monetary policy that results
in lower interest rates and greater access to credit
Prime Rate- lowest rate of interest that banks
charge their best customers
Prime Rate- lowest rate of interest that banks
charge their best customers
Quantity Theory of Money- hypothesis that the
supply of money directly affects the price level
over the long run
Quantity Theory of Money- hypothesis that the
supply of money directly affects the price level
over the long run
Bank Holding Company- company that owns and
controls one or more banks
Bank Holding Company- company that owns and
controls one or more banks
Regulation Z- provision extending truth-in-lending
disclosures to consumers
Regulation Z- provision extending truth-in-lending
disclosures to consumers