Holt Economics Chapter 13
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Medium of exchange
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Any item that sellers accept as payment for goods and services
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Standard of value
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A way to measure the relative value of goods and services by comparing their prices
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Store of value
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A characteristic of a medium of exchange that allows it , and thus value or wealth, to be stored
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Commodity money
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An item that has a value of its own and that also is used as money
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Representative money
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An item that has value because it can be exchanged for something else of value
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Specie
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Gold or silver
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Fiat money
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Money that is not backed by gold, silver, or other item of value but that has worth because a government requires that it be accepted as a medium of exchange
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Currency
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Coins and paper bills
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Near money
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An asset, such as savings account, that can be converted into cash when needed
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Gold standard
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A monetary system in which paper money and coins carry the value of a specified amount of gold
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Commercial banks
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A financial institution whose chief purpose is to accept savings and checking deposits, make loans to businesses and individuals, and transfer money
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Savings and loan associations
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A financial institution that lends money and in which depositors maintain savings and checking accounts
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Mutual savings banks
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A bank that is owned by its depositors, who share in its profits
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Debit card
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A plastic card used to make withdrawals at an automatic teller machine or a place of business
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Deregulation
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A lifting or lessening of government control or restrictions on a company, industry, or profession
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Default
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The failure to make payments on a loan
