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?
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
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
What is all the money available in the United States?
What is the ability to be used, or directly converted to, cash?
Demand Deposits
What is the money in checking accounts?
What are assets that have liquidity?
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?
What is a failure to pay loans?
What is a specific type of loan that is used to buy real estate?
Credit Card
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?
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?