| A | B |
|---|
| barter economy | moneyless economy that relies on trade |
| money | any substance that functions as a medium of exchange, a measure of value, and a store of value |
| medium of exchange | money or other substance generally accepted in exchange |
| measure of value | one of the three functions of money that allows it to serve as a common denominator to measure value |
| store of value | allows people to preserve value for future use |
| commodity money | money that has an alternative use as a commodity |
| fiat money | money by government decree |
| wampum | a form of currency the Narraganset Native Americans made out of white conch and black mussel shells |
| specie | money in the form of coins, usually made from silver or gold |
| bullion | ingots or bars of precious metals |
| monetary unit | standard unit of currency in a country's money system |
| monetary standard | the mechanism designed to keep the money supply portable, durable, divisable, and stable in value |
| state bank | a bank that receives its charter to operate from a state government |
| wildcat bank | banks that over-printed their currencies |
| legal tender | a flat currency that must be accepted in payment for debts |
| greenbacks | paper currency not backed by gold that was printed by the United States government in 1861; notes were printed front and back in green ink |
| United States notes | a new currency that had no gold or silver backing |
| National Banking System | consists of financially sound and rigorously isnpected banks |
| national banks | banks that received charters from the national government |
| National Bank notes | uniform in appearance and backed by the United States government bonds |
| national currency | National bank notes |
| gold certificates | paper currency backed by gold on deposit with the United States Treasury |
| Silver certificates | backed by silver coins placed on deposit with the Treasury |
| Treasury coin notes | paper currency redeemable in both gold and silver |
| gold standard | a monetary standard under which the basic unit of currency is equivalent to and can be exchanged for, a set amount of gold |
| inconvertible fiat money standard | fiat money that cannot be exchanged for gold or silver; Federal Reserve notes today |
| dual banking system | a system that allows banks to obtain charters from either the state or the federal government |
| Federal Reserve System | FED, serves as the nation's first central bank |
| central bank | a bank that can lend to other banks in times of need |
| Federal Reserve notes | FED's own currency, replaced all other types of federal currency |
| run on the bank | a rush by depositors to withdraw their funds from a bank before it failed |
| bank holiday | a brief period during which every bank in the country was required to close |
| commercial banks | banks chartered by states or the National Banking System |
| demand deposit accounts | accounts whose funds could be removed by simply writing a check without prior approval from the depositary institution |
| thrift institutions | savings and loan associations |
| Negotiable Order of Withdrawal (NOW) account | a type of checkin acount that pays interest |
| savings and loans associations (S & L) | a financial institution that invested the majority of its funds in home mortgages |
| share drafts | like a checking account that provide members with a way to earn interest on deposits |
| Regulation Q | the federal requirement that set maximum interest rates on savings accounts |
| deregulation | the removal or relaxation of government restrictions on business |
