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money

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Anything generally accepted in exchange for goods and services

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medium of exchange

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Anything that is used to determine value during the exchange of goods and services

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barter

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The direct exchange of one good for another, without the use of money

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unit of account

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A means for comparing the values of goods and services

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store of value

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Something that keeps its value if it is stored rather than used

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currency

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Coins and paper bills used as money

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commodity money

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objects that have value in themselves and that are also used as money

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representative money

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Objects that have value because the holder can exchange them for something else of value

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fiat money

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Money that has value because the government has ordered that it is an acceptable means to pay debts

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bank

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an institution for receiving, keeping, and lending money

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national bank

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A bank chartered, or licensed, by the national government

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bank run

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Widespread panic in which great numbers of people try to redeem their paper money

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greenback

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Name given to paper money issued by the government during the Civil War, so called because the back side was printed with green ink. They were not redeemable for gold, but $300 million were issued anyway. Farmers hit by the depression wanted to inflate the notes to cover losses, but Grant vetoed an inflation bill and greenbacks were added to permanent circulation. In 1879 the federal government finally made greenbacks redeemable for gold.

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gold standard