Barter Money What is the direct exchange of one set of goods or services for another without the use of money? What serves as a medium of exchange, a unit of account, and a store value? Currency Medium of Exchange - 1 What are coins and paper bills used as money? What is used to determine value during the exchange of goods and services? Unit of Account - 2 Store of Value - 3 What is a means for comparing the values of goods and services? What is something that keeps its value if it is stored rather than used? Commodity Money Representative Money What is an object that has value in itself and that is also used as money? What is an object that has value because the holder can exchange it for something else of value? Fiat Money Bank What is money that has value because the government has ordered that it is an acceptable means to pay debt? What is an institution for receiving, keeping, and lending money? Bank Run Gold Standard What is the widespread panic in which great numbers of people try to redeem their paper money? What is a monetary system in which paper money and coins are equal to the value of a certain amount of gold? Federal Reserve System Central Bank What is the nation’s central banking system? What is a bank that can lend to other banks in times of need? Federal Reserve Note Federal Deposit Insurance Corporation (FDIC) What is the national currency we use today in the United States? What is a government agency that insures customer deposits if a bank fails? National Bank Member Banks What is a bank chartered or licensed by the national government? What is a bank that belongs to the Fed? Money Supply Liquidity What is all the money available in the United States? What is the ability to be used, or directly converted to, cash? Demand Deposits M1 What is the money in checking accounts? What are assets that have liquidity? M2 Fractional Reserve Banking M2 = M1 + several additional assets What is a banking system that keeps only a fraction of funds on hand and lends out the remainder? What is near money? Default Mortgage What is a failure to pay loans? What is a specific type of loan that is used to buy real estate? Credit Card Principal What is a card that entitles its holder to buy goods and services based on the cardholder’s promise to pay for these goods and services? What is the amount borrowed? Interest Debt Card It uses a PIN What is the price paid for the use of borrowed money? What withdraws money by transferring it directly from your checking account into the store’s bank account?