Banking
Inflation
Money
Miscellenous
Characteristics of Money
100
consists of all of the assets in M1, plus deposits in savings accounts and money market mutual funds.
What is M2
100
general increase in prices
What is inflation.
100
something that keeps its value if it is stored rather than used.
What is store of value.
100
used to withdraw money directly from a checking account.
What is a debit card.
100
People need to be able to take money with them as they go about their business.
What is portibility.
200
offer checking services, accept deposits, and make loans.
What is commercial banks.
200
the ability to purchase goods and services, is decreased by rising prices.
What is purchasing power.
200
anything that is used to determine value during the exchange of goods and services.
What is medium of exchange.
200
a specific type of loan that is used to purchase real estate.
What is mortgage.
200
Everyone must be able to exchange the money for goods and services.
What is acceptibility.
300
According to the speaker a banks greatest form of revenue.
What is Fees charged to customers.
300
the relative cost of goods and services in the entire economy at a given point in time.
What is price level.
300
consists of objects that have value in themselves.
What is commodity money.
300
Two units of the same type of money must be the same in terms of what they will buy, that is, they must be
What is uniform.
300
Any two units of money must be uniform, that is, the same, in terms of what they will buy.
What is uniformity.
400
are cooperative lending associations for particular groups, usually employees of a specific firm or government agency.
What is a credit union.
400
inflation occurs when producers raise prices in order to meet increased costs.
What is cost-push theory.
400
has value because the holder can exchange it for something else of value.
What is representative money.
400
a measurement that shows how the average price of a standard group of goods changes over time.
What is a price index.
400
To be useful, money must be easily divided into smaller denominations, or units of value.
What is Divisibility
500
consists of assets that have liquidity, or the ability to be used as, or easily converted into, cash.
What is M1 account.
500
states that too much money in the economy leads to inflation.
What is quantity theory of inflation.
500
has value because the government decreed that is an acceptable means to pay debts.
What is fiat money.
500
states that inflation occurs when demand for goods and services exceeds existing supplies
What is the demand pull theory.
500
Objects used as money must withstand physical wear and tear.
What is durability
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