Wrestling Blogs - Lizz Starling

Lizz Starling

Chapter 10 Vocabulary

-Money: anything that servers as a medium of exchange, a unit of account, and a store of value
-Medium of Exchange: anything that is used to determine the value during the exchange of goods and services
-Barter: the direct exchange of one set of goods or services for another
-Unit of Account: a means for comparing the value of goods and services
-Store of Value: something that keeps its value of it is stored rather than used
-Currency: coins and paper bills used as money
-Commodity Money: objects that have value in themselves and that are also used as money
-Representative Money: objects that have value because the holder can exchange them for something else of value
-Fiat Money: money that has value because the government has ordered that it is an acceptable means to pay debts

-Bank: an institution for receiving, keeping and lending money
-National Bank: a bank chartered, or licensed, by the national government
-Bank Run: widespread panic in which great numbers of people try to redeem their paper money
-Greenback: paper currency issued during the Civil War
-Gold Standard: a monetary system in which paper money and coins are equal to the value of a certain amount of gold
-Federal Reserve System (FRS): the nation’s central banking system
-Central Bank: bank that can lend to other banks in time of need
-Member Bank: bank that belongs to the FRS
-Federal Reserve Note: a national currency we use today in the United States
-Great Depression: a severe economic decline that began in 1929 and lasted for more than a decade
-Federal Deposit Insurance Corporation (FDIC): the government agency that insures customer deposits if a bank fails

-Money Supply: all the money available in the United State economy
-Liquidity: the ability to be used as, or directly converted to cash
-Demand Deposit: the money in checking accounts
-Money Markey Mutual Fund: a fund that pools money from small savers to purchase short-term government and corporate securities
-Fractional Reserve Banking: a banking system that keeps only a faction of the funds on hand and lends out the remainder
-Default: a failure to play back a loan
-Mortgage: a specific type of loan that is used to buy real estate
-Credit Card: a card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services
-Interest: a price paid for the use of borrowed money
-Principal: the amount of money borrowed
-Debit Card: a card used to withdraw money
-Creditor: a person or institution to whom money is owed