Functions and Types of Money

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

The direct exchange of one set of goods or services for another.

<p>A means for comparing the values of goods and services.</p> Signup and view all the answers

<p>Something that keeps its value if it is stored rather than used.</p> Signup and view all the answers

<p>Coins and paper bills used as money.</p> Signup and view all the answers

<p>Objects that have value in themselves and that are also used as money.</p> Signup and view all the answers

<p>Objects that have value because the holder can exchange them for something else of value.</p> Signup and view all the answers

<p>Money that has value because the government has ordered that it is an acceptable means to pay debts.</p> Signup and view all the answers

<p>1.) Money as Medium of Exchange; 2.) Money as a Unit of Account; 3.) Money as a Store of Value</p> Signup and view all the answers

<p>1.) Durability; 2.) Portability; 3.) Divisibility; 4.) Uniformity; 5.) Limited Supply; 6.) Acceptability</p> Signup and view all the answers

<p>An institution for receiving, keeping, and lending money.</p> Signup and view all the answers

<p>A bank chartered, or licensed, by the national government.</p> Signup and view all the answers

<p>Widespread panic in which great numbers of people try to redeem their paper money.</p> Signup and view all the answers

<p>Paper currency issued during the Civil War.</p> Signup and view all the answers

<p>A monetary system in which paper money and coins are equal to the value of a certain amount of gold.</p> Signup and view all the answers

<p>The nation's central banking system.</p> Signup and view all the answers

<p>A bank that can lend to other banks in times of need.</p> Signup and view all the answers

<p>A bank that belongs to the Federal Reserve.</p> Signup and view all the answers

<p>The national currency that we use today in the United States.</p> Signup and view all the answers

<p>The severe economic decline that began in 1929 and lasted for more than a decade.</p> Signup and view all the answers

<p>The government agency that insures customer deposits if a bank fails.</p> Signup and view all the answers

<p>To hold the money that the government collected in taxes and to help the government carry out its powers.</p> Signup and view all the answers

<p>Bank runs and panics, wildcat banks, fraud, and many different currencies.</p> Signup and view all the answers

<p>These acts provided the power to charter banks, require banks to hold adequate reserves, and issue a single national currency.</p> Signup and view all the answers

<p>1.) It set a definite value for the dollar; 2.) The government could issue currency only if it had gold in the treasury to back notes.</p> Signup and view all the answers

<p>Deregulation, high interest rates, bad loans, and fraud.</p> Signup and view all the answers

<p>Essentially abolished the independence of the saving and loan industry.</p> Signup and view all the answers

<p>All money available in the United States economy.</p> Signup and view all the answers

<p>The ability to be used as or directly converted to cash.</p> Signup and view all the answers

<p>The money in checking accounts.</p> Signup and view all the answers

<p>A fund that pools money from small savers to purchase short-term government and corporate securities.</p> Signup and view all the answers

<p>A banking system that keeps only a fraction of funds on hand and lends out the remainder.</p> Signup and view all the answers

<p>Failure to pay back a loan.</p> Signup and view all the answers

<p>A specific type of loan that is used to buy real estate.</p> Signup and view all the answers

<p>A card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.</p> Signup and view all the answers

<p>The price paid for the use of borrowed money.</p> Signup and view all the answers

<p>The amount of money borrowed.</p> Signup and view all the answers

<p>A card used to withdraw money.</p> Signup and view all the answers

<p>Person or institution to whom money is owed.</p> Signup and view all the answers

<p>Money that people can gain access to easily and immediately to pay for goods and services.</p> Signup and view all the answers

<p>All assets in M1 plus several additional assets that cannot be used as cash directly but can be converted to cash fairly easily.</p> Signup and view all the answers

<p>storing money, saving money, loans, mortgages, credit cards, and simple and compound interest.</p> Signup and view all the answers

<p>saving accounts</p> Signup and view all the answers

<p>commercial banks</p> Signup and view all the answers