Show Me the Money: Functions, Properties, and Types.
This broad definition refers to anything that people will accept as payment for goods and services.
What is money?
These events, where panicked depositors tried to withdraw all their cash at once, led to massive bank failures in 1929.
What are Bank Runs?
This is the number of members who sit on the Federal Reserve’s Board of Governors.
What is seven (7)?
This economic principle suggests nations should specialize in goods for which they have the lowest opportunity cost.
What is Comparative Advantage?
The World Bank uses this acronym to describe high-income, highly industrialized nations like Norway or Japan.
What are IACs (Industrially Advanced Countries)?
This function of money allows you to determine that a $20 shirt is worth roughly 15 soft tacos.
What is Standard of Value?
This government corporation was created by the Glass-Steagall Act of 1933 to insure bank deposits.
What is the FDIC?
If the Fed wants to fight a recession, it will engage in this type of "Expansionary" move involving government securities.
What is Buying Bonds?
This specific trade barrier is a tax placed on imported goods to protect domestic industries.
What is a Tariff?
This concept explains how low income leads to low savings, which leads to low investment, keeping a country poor.
What is the Vicious Circle of Poverty?
This physical property is necessary so that money can be used to make change and allow for flexible pricing.
What is Divisibility?
Banks serve as this type of institution, which collects funds from savers and invests them in assets for borrowers.
What is a Financial Intermediary?
Unlike Monetary Policy, this type of policy is controlled by the government through taxing and spending.
What is Fiscal Policy?
The U.S. currently has a trade deficit in goods, but maintains a trade surplus in this category.
What are Services?
This development strategy involves giving tiny loans (as little as $20) to the poor to start small businesses.
What is Microfinance (or the Grameen Bank)?
This type of money, used by the U.S. since 1971, has value only because the government says it does.
What is Fiat Money?
This term describes the modern U.S. banking market, where a few very large banks control the majority of the market.
What is an Oligopoly?
This is the specific percentage the Fed targets for the annual inflation rate.
What is 2%?
This trade agreement, which took effect in 1994, integrated trade between the U.S., Mexico, and Canada.
What is NAFTA?
Investing in this—which includes education, job training, and health—is a key way for DVCs to grow their economies.
What is Human Capital?
While M1 includes currency and checking accounts, M2 adds these "near money" assets that can't be spent directly but are easily converted to cash.
What are Savings Accounts (or CDs/Time Deposits)?
This is the market where financial assets, such as stocks, are resold from one investor to another.
What is the Secondary Market?
This is the most frequently used tool of the Fed, involving the buying and selling of government bonds to banks and the public.
What are Open Market Operations?
Under this current U.S. exchange rate system, the market determines the value of the dollar, but the Fed may intervene to stabilize it.
What is a Managed Float?
These are cash payments given to families in DVCs only if they meet certain requirements, like child school attendance.
What are Conditional Cash Transfers (CCT)?