10-1
money by government decree
fiat money
currency that must be accepted for payment by decree of government
legal tender
person who owns a share or shares of stock in a corporation
shareholder
a moneyless economy that relies on trade
barter economy
What is similar to a credit card in size and appearance, but has a built-in microprocessor instead of a magnetic security strip?
Smart Card
funds deposited in a bank that can be accessed by writing a check or using a debit card
Demand Deposit Account (DDA)
a privately owned bank that receives its operating charter from the federal government
national bank
certificate of ownership in a corporation
stock
sudden rush by depositors to withdraw all deposited funds, generally in anticipation of bank failure or closure
bank run
What's another name for DDA?
Checking Account
privately owned, publicly controlled, central bank of the United States
Federal Reserve System (Fed)
when the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold
gold standard
receipt showing that an investor has made an interest-bearing loan to a financial institution
receives its operating charter from a state government
state bank
Which of the following can cost you money in large interest payments?
A. Debit Card
B. Credit Card
C. Checking Account
D. Savings Account
B - Credit Card
money in the form of silver or gold coins
specie
a banker's bank, which can lend to other banks in times of need
central bank
formula used to compute the amount of a depository institution’s required reserves
reserve requirement
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
credit union
In the early 1800s, currency in the U.S. was issued by who?
banks
What are THREE of the FOUR characteristics of modern money?
portability
durability
divisibility
scarcity
insures customer deposits in case of a bank failure
Federal Deposit Insurance Corporation (FDIC)
The United States went on the gold standard in ________ and then went off the gold standard in ________.
A. 1787, 1811
B. 1863, 1876
C. 1900, 1933
D. 1941, 1945
C - 1900, 1933
money that has an alternative use as an economic good
commodity money
What are TWO of the THREE FUNCTIONS of money?
Medium of Exchange
Measure of value
Store of value