Ch 14 - Money and Banking

Ability to turn an asset into cash rapidly and without loss.

Money is used to measure and compare.

A(n) ________ requires the exchange of goods of similar or equal value, which makes it tricky to assign value to goods.

Is the coin or paper currency which must be accepted in exchange for goods or services by the decree of the government.

Money is used to accumulate wealth.

is the most efficient method of exchanging goods and services compared to bartering.

The Fed keeps a fraction (10 %) of the funds deposited in ________ as reserves.

includes everything in M1 plus money deposited in savings and other miscellaneous items.

Money refers to the coins and paper money which have no standing behind them except the act that they are legal tender.

Is bank reserves plus currency in circulation.

Are a convenient way to take a miniscule loan form a bank.

A(n) ________ is more flexible in the sense that gold holdings of the government need not increase in order to expand the nations supply of money.

Money used to buy goods and services.

Money is anything which society deems as a(n) ________ in exchange for a good or service.

The ________ are part of the money supply as measured by M1 and M2, meaning that the money supply is increased when banks make loans with their excess reserves.

Checking accounts are called ________, while savings, loans, credit unions, and such are called other checkable deposits.

The money deposited into ________ is part of the money supply.

ability to turn an asset into cash rapidly and without loss

Money used to buy goods and services

Money is used to measure and compare

Money is used to accumulate wealth

is bank reserves plus currency in circulation

the lender need not hold the government security until it matures, at the time the kender may sell the government security to another investor