Functions of Money
A basic function of money, allowing it to be used to trade for goods and services.
What is a medium of exchange?
This financial statement shows a company's revenues, expenses, and net income over a specific period.
What is an income statement?
A set of technologies and procedures used to gather, process, and distribute information to decision-makers.
What is an information system?
These institutions accept deposits and lend money to customers.
What are depository institutions?
This type of loan has a maturity period of one to five years.
What is an intermediate-term loan?
This function of money allows it to be stored and kept for future use without losing value.
What is store of value?
The formula: Assets = Liabilities + Owner’s equity, appears on this financial statement.
What is a balance sheet?
This managerial role is responsible for overseeing the collection and use of data in a company.
What is an information manager?
Established in 1933, this organization insures deposits in commercial banks up to $250,000.
What is the Federal Deposit Insurance Corporation (FDIC)?
A new company can secure this type of investor, who provides capital in exchange for ownership equity.
What are venture capitalists?
This function of money enables it to be used to measure and compare the value of goods and services.
What is a measure of value?
This type of accounting provides internal reports to help managers make business decisions.
What is managerial accounting?
An integrated system used by organizations to manage all internal operations.
What is an enterprise resource planning (ERP) system?
This financial crisis in 2007 started when home buyers could no longer afford their mortgages.
What is the subprime mortgage crisis?
This plan estimates the amount of money needed to start and operate a business.
What is a financial plan?
A type of currency that existed before money but was inefficient due to the difficulty of matching needs in trade.
What is bartering?
The accounting method that calculates how many units need to be sold to cover all fixed and variable costs.
What is break-even analysis?
This data-mining activity at Caesars focuses on identifying profitable customers and encouraging their return.
What is customer profiling?
This government entity uses tools like the reserve requirement and discount rate to control the money supply.
What is the Federal Reserve?
The process of obtaining funding from a large number of people, usually via the internet.
What is crowdfunding?
A financial asset used in short-term investments, included in the M-2 money supply.
What are money market mutual funds?
This set of principles guides the preparation of financial statements in the U.S.
What are Generally Accepted Accounting Principles (GAAP)?
This is the term for data that has been processed into a useful form for decision-making.
What is information?
A process in which financial institutions create additional loans based on a percentage of deposits they hold.
What is the money multiplier effect?
This government-sponsored entity buys mortgages from banks and guarantees them.
What is Fannie Mae?