level 1
anything that is used to determine value during the exchange of goods and services
Medium of exchange
a means for comparing the values of goods and services
Unit of account
objects that have value because the holder can exchange them for something else of value
representative money
bank that can lend to other banks in times of need
Central Bank
A widespread panic in which many people try to redeem their paper money at the same time
Banks runs
the amount of reserves that banks are required to keep on hand
reserve requirement
The interest rate on the loans that the Fed makes to banks
Discount Rate
market for selling financial assets that can only be redeemed by the original holder
Primary Market
The seizure of property from borrowers who are unable to repay their loans
Foreclosures
the process by which banks record whose account gives up money and whose account receives money when a customer writes a check
check clearing
market for reselling financial assets
Secondary Market
market in which money is lent for periods longer than a year
Capital Market
a person who links buyers and sellers of stock
stockbroker
a card used to withdraw money from a bank account
debit card
a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services
credit card
a market for buying and selling stock
stock exchange
the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller
Capital Gain
the act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit
investment