Time Value of Money
Monetary Aggregates
Terms
Commodity Money
Terms Part Two
100

Money received today has a higher value than money received in the future 

What is Time Value of Money?

100

A law that, among other things, stated the maximum interest rate banks could pay on deposits 

What is Regulation Q?

100

M1 is the narrowest definition of money supply

What is M1?

100

Money that has some other use other than being a medium of exchange

What is Commodity Money?

100

The amount of savings left in an interest-bearing account over time

What is future value?

200

If you are indifferent between consuming now or in the future 

What is "Low time preference"?

200

The removal of funds from a financial intermediary to invest them directly, as though a mutual fund  

What is Disintermediation? 

200

Use of another country's currency in private transactions

What is Currency substitution?

200

An asset that functions as money but has no intrinsic value

What is Fiat Money?

200

A god that is accepted by both sides in a transaction

What is medium of exchange?

300

If you prefer current consumption to future consumption

What is "High time preference"?

300

The amount of money in circulation in the economy 

What is Monetary Aggregates?

300

The situation when market participants use another country's currency as money

What is Dollarization? 

300

The good cannot spoil over time or by being in the sun too long 

What is Physically Durable? 

300

The situation where each party wants what the other had to offer for sale

What is Double of coincidence of wants ?

400

To get someone to defer your consumption to the future 

What is compensation?

400

Currency in the hands of the public, Traveler's checks, Demand deposits, Other check-able deposits 

What is included in M1?

400

M2 is a broader measurement of money supply, including savings deposits, small denominations, and time deposits

What is M2? 

400

Not all goods are going to have their value stated in nice round amounts; sometimes you have to "make change"

What is Easily Divisible? 

400

An agreed-upon method of placing relative value on assets 

What is Unit of account? 

500

Interest earned on the principal plus interest 

What is Compound Interest? 

500

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? 

500

"Generally accepted" in exchange for goods and services

What is Money?

500

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? 

500

A money must retain some of its purchasing power over time

What is Store of Value? 

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