Vocab Words
“Generally accepted” in exchange for goods and services.
What is Money?
Usable for buying and selling goods and services.
What is Medium Of Exchange?
....occurs due to the money supply growing too quickly.
What is inflation?
Two widely used types of money through time:
What is Gold and Silver?
Compensation is also called:
What is Intrest?
Use of another country’s currency in private transactions.
What is Currency Substitution?
Used for measuring the relative worth of a wide variety of goods.
What is monetary units?
The economy could slide into recession if there is too little....?
What is Money?
The narrowest measurement of money supply
What is M1?
Interest earned on the principal plus interest.
What is Compound Intrest?
Assets accepted for repayment of debt to the government as well as private transactions.
What is Legal Tender?
Enables people to transfer purchasing power from the present to the future.
What is Store of value?
Money that has some other use other than being a medium of exchange
What is Commodity Money?
Consist of all of M1 but is a broader measurement of the money supply
What is M2?
If you prefer current consumption to future consumption:
What is High Time Preferance?
The situation when market participants use another countries currency as money.
What is Dollarization?
Money can lose it's ..... due to inflation.
What is Store of value function?
What has functioned as money over time
What is cigarettes?
Used to estimate how much or how little is in a money supply.
What is Money Aggregates?
If you are indifferent between consuming now or in future you have:
What is Low Time Preference?
Another countries currency is legal tender but the country also issues its own currency.
What is Official Semi Dollarization?
We gauge the value of goods in....?
What is dollars?
For any asset to function as money it must:
What is be durable, be broadly demanded, be portable?
Different Types of Money aggregates:
The value of money at some point in time in the future.
What is Future Value?