Flashcards
22. Money and Banking
Flashcards do conjunto (25)
- 1What is money?Anything generally accepted as a way of paying for goods and services
- 2What are cheques, credit cards or online banking known as?Near money
- 3What is token money?Money whose face value is less than intrinsic value
- 4What is money not backed by gold called?Fiat money or fiduciary issue
- 5What does barter depend on?Double coincidence of wants
- 6What is medium of exchange?Flexibility to buy and sell different goods or services (unlike barter)
- 7What is unit of account?Comparison of good and services in terms of value
- 8What is standard of deferred payment?Purchase of goods on credit
(buy now, pay later) - 9What is store of wealth?Allowance of people to save in order to pay in the future
- 10What is primary liquidity ratio?Ratio of cash a bank must by law hold to cover total deposits
- 11What is secondary liquidity ratio?Ratio of exchequer bills and government bonds a bank must by law have to cover total deposits
- 12What is the rediscount rate?Rate ECB charges when it lends to banks
- 13What do the following Money Supply figures mean? M1 M2 M3M1 (Narrow money supply)
M2 (intermediate money supply)
M3 (broad money supply) - 14What is the exchange rate?Price of one currency in terms of another
- 15What is balance of payments?Difference between imports and exports of a country
- 16What is Purchasing Power Parity? (PPP)Estimate of adjustment exchange rate needs to be the same as purchasing power
- 17What is devaluation?When value of currency is deliberately lowered to correct balance of payments deficit
- 18What is a fixed (pegged) exchange rate?When currency is matched to value of another currency
- 19What is floating exchange rate?When market conditions are allowed determine exchange rate of currency
- 20What does ECB decide?Eurozone's monetary policy
- 21What are interest rates?The proportion of a loan that is charged as interest to the borrower
- 22What is currency?A system of money used in a particular country
- 23What does the IMF do?Oversee global financial system
- 24What does The World Bank do?Provide loans to LDCs for capital projects
- 25What does The European Investment Bank do?Finance capital projects furthering EU objectives
Informações
- Descrição
- Leaving Cert Economics (Macro Flashcards) FlashCards sobre 22. Money and Banking, criado por samstevenson2014 em 09-05-2015.
- Criado por
- samstevenson2014
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