Flashcards
Chp 11.
Flashcards do conjunto (22)
- 1MoneyIs a commodity or token that is accepted as a means of payment
- 2What three things are included in the definition of Money1. Commodity or Token
2. Generally Accepted
3. Means of Payment - 3Commodity or Token (Money)A commodity is something we give value too. Ex. Gold, Milk. A token is made from something that doesn't have value but is given value
- 4What does money have to do and how recognizable should it beMoney has to be recognizable and divisible
- 5Generally Accepted (Money)It means that it can be used to buy anything and everything
- 6Means Of Payment (Money)Is the method of settling debt. When a payment is made the deal is complete
- 7What are the three vital Functions of Money1. Medium Exchange
2. Unit of Account
3. Store Value - 8Medium of Exchange (Function)Is an object that is generally accepted in return for goods and services. Money is a medium of exchange.
- 9What is barter and Double Coincidence of WantsBartering is trading of goods and services. DCW is when the person your trading with needs to want what you have and V.V.
- 10Unit of Account (Function)Is an agreed upon measure for stating the prices of goods and services
- 11Store Value (Function)Any commodity or token that can be held and exchanged later for goods or services. Money is Store Value because we use it to buy things
- 12What is most money in the worldFiat Money
- 13Fiat MoneyIt is objects that are money because the law decrees or orders them to be money
- 14Fiat Money consists of what two things1. Currency
2. Deposits at banks and other financial institutions - 15CurrencyIt is physical money like notes and coins
- 16DepositsDeposits at banks, credit unions, saving banks are money. They are money because they can be used to make payments
- 17What are the official measure of moneyM1 and M2
- 18Currency inside banks is money? T or FF. Money inside banks is not money because they are not available as a form for payment
- 19M1Consists of currency held by businesses and individuals, Traveler's checks, and checkable deposits owned by individuals or businesses
- 20M2M1+ Saving Deposits, time deposits, money market funds and other deposits
- 21What is like Glacials and InterglacialsMoney because the more there is in savings (Ice Caps/Glaciers) the less money (Water) there is and V.V.
- 22What is not money1. Checks 2. Credit Cards 3. Debit Cards 4. e-Checks