Chapter 10 Economics Vocab – Flashcards
Flashcard maker : Darren Farr
Currency
Coins and paper bills used as money
Unit of account
a means for comparing the values of goods and services
Fiat money
money that has value because government has ordered that it is an acceptable means to pay debts
Gold standard
monetary system in which paper money and coins are equal in value to a certain amount of gold
Federal Reserve Note
national currency we use today in U.S
Creditor
Person or institution to whom money is owed
Mortgage
a specific type of loan that is used to buy real estate
Money Market Mutual Fund
fund that pools money from small saves to purchase short-term government and corporate securities
Federal reserve system
nation’s central banking system
national bank
a bank chartered or licensed by national government
representative money
objects that have value because the holder can exchange them for something else of value
barter
the direct exchange of one set of goods or services for another
medium of exchange
anything that is issued to determine value during exchange of goods and services
principal
amount of money borrowed
liquidity
ability to be used as or directly converted to cash
bank run
widespread panic in which great numbers of people try to redeem their paper money
greenback
paper currency issued by north during civil war
commodity money
objects that have value in themselves as well as for use as money
store of value
something that keeps its value if its stored rather than used
Federal Deposit Insurance Corporation
government agency that insures customer deposits if a bank fails
Default
failure to pay back a loan
demand deposit
money in checking accounts
money supply
all money available in U.S. economy
Money
anything that serves as medium of exchange
credit card
a card entitling its holder to buy goods and services based on holder’s promise to pay for these goods and services
fractional reserve banking
banking system that keeps only a fraction of funds on hand and lends out remainder
debit card
a card used to withdraw money
central bank
bank that can lend to other banks in times of need
bank
an institution for receiving keeping and lending money
member bank
bank that belongs to federal reserve system
interest
price paid for use of borrowed money or money earned by deposit fund
great depression
severe economic decline began in 1929 and lasted more than a decade
