Money
This is anything generally accepted as a means of payment
What is money
This is a something you create to make sure you save money every month
What is a budget?
Another word for bartering
What is trading
This is the two functions do banks do
receive deposits from savers and make loans to borrowers
Currency is valued/unique to its buyers and sellers
What is Scarcity?
This basic function of money means buying/selling goods
What is Means of Exchange?
BONUS Characteristic of money: Easy to divide
What is Divisibility?
The exchange of goods and services without the use of money.
What is Bartering.
The movement of a check from the depository institution at which it was deposited back to the institution on which it was written
What is check clearing
Willingness to use currency
What is Acceptability?
This basic function of money mean comparing value of goods
What is Standard of Value?
This type of saving account is something anyone can do every paycheck
What is a Roth IRA or personal savings account?
Barter is time consuming due to these reasons.
- Have to find someone who wants what you have
-Livestock and other items are not divisible
-Items are not not portable
This is type of deposits is when money is put into a savings account
What are Savings deposits?
Easy to carry
What is Portability?
This function of money means holding the ability to buy things
What is Store of value?
This type of savings account takes out money every paycheck and puts it into an account you can access when you retire
What is a 401k/403B
If Kenny wants cloth, which Tyler has, then Kenny should have a commodity that Tyler wants in exchange for the cloth
What is coincidence of wants?
A company that owns and/or controls one or more U.S. banks or one that owns, or has controlling interest in, one or more banks
What are bank holding companies.
Good material that lasts for a long time
What is Durability?
This is another form of money other than cash
What are checks or credit cards?
This is a government agency that takes out money from your paycheck every month that you will get when you retire
What is social security?
Henry traded a ruby for a chair when chairs were highly demanded. He tried to trade the chair away 4 months later but no one wanted it. The chair was still in mint condition. Why did no one want the chair after 4 months?
What is difficulty in storing value
The liquid assets set aside for future use by an individual, central bank or business
What are reserves.
Must all look the same
What is Uniformity?