| A | B |
|---|
| money supply | all the money available in the united states economy |
| liquidy | the ability to be used as, or directly converted to, cash |
| demand deposit | the money in checking accounts |
| fractional reserve banking | a banking system that keeps only a fraction of funds on hand and lends out the remainder |
| default | failure to pay back a loan |
| mortgage | a specific type of loan that is used to buy real estate |
| credit card | a card entiteling its holder to buy goods and services based on the holders promise to pay for these goods and services |
| interest | the price paid for the use of borrowed money |
| principal | the amount of money borrowed |
| debit card | a card used to withdraw money |
| creditor | person or institution to whom money is owed |
| money | anything that serves as a medium of exchange a unit of account and a store of value |
| medium of exchange | anythign that is used to determine 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 | somthing that keeps its value if 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 |
| represenative 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 menas to pay debts |
| banke | an institution for receinving 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 |
| federal reserve system | the nations central banking system |
| central bank | banke that can lend to other banks in time of need |
| member bank | bank that belings to the federal reserve system |
| great depression | the sever economic decline that began in 1929 and lasted for a decad |
| FDIC | the government agency that insures customer deposeits if a bank fails |
| money market nutal fund | a fund that pools money from small svers to purchse government |
| default | failure to pay back a loan |
| mortgage | a specific type of loan that is used to buy real estate |
| creidit card | a card entitling its holder to buy goods and services based on the holders promie to pay for these goods and services |
| interest | the price paid for the use of borrowed money |
| principle | the amount of money borrowed |
| debit card | a card used to withdraw money |
| creditor | person or institution to whom money is owned |
