Money received today has a higher value than money received in the future
What is Time Value of Money?
A law that, among other things, stated the maximum interest rate banks could pay on deposits
What is Regulation Q?
M1 is the narrowest definition of money supply
What is M1?
Money that has some other use other than being a medium of exchange
What is Commodity Money?
The amount of savings left in an interest-bearing account over time
What is future value?
If you are indifferent between consuming now or in the future
What is "Low time preference"?
The removal of funds from a financial intermediary to invest them directly, as though a mutual fund
What is Disintermediation?
Use of another country's currency in private transactions
What is Currency substitution?
An asset that functions as money but has no intrinsic value
What is Fiat Money?
A god that is accepted by both sides in a transaction
What is medium of exchange?
If you prefer current consumption to future consumption
What is "High time preference"?
The amount of money in circulation in the economy
What is Monetary Aggregates?
The situation when market participants use another country's currency as money
What is Dollarization?
The good cannot spoil over time or by being in the sun too long
What is Physically Durable?
The situation where each party wants what the other had to offer for sale
What is Double of coincidence of wants ?
To get someone to defer your consumption to the future
What is compensation?
Currency in the hands of the public, Traveler's checks, Demand deposits, Other check-able deposits
What is included in M1?
M2 is a broader measurement of money supply, including savings deposits, small denominations, and time deposits
What is M2?
Not all goods are going to have their value stated in nice round amounts; sometimes you have to "make change"
What is Easily Divisible?
An agreed-upon method of placing relative value on assets
What is Unit of account?
Interest earned on the principal plus interest
What is Compound Interest?
All of M1, Savings deposits, including money market, deposits accounts, small times deposits, shares in retail MMFs net or retirement accounts
What is included in M2?
"Generally accepted" in exchange for goods and services
What is Money?
The good functioning as money has to be probably. Steel I beams would obviously not make a good currency
What is Easy To Carry Around?
A money must retain some of its purchasing power over time
What is Store of Value?