Money/Value
Facilitates the buying and selling of goods
Medium of exchange
Official money regulated by a country's government or its central bank
National currency
A person, company, or institution that has the right to share in the profits of a business
Shareholder
Equals the total amount of $ a bank must hold in reserve divided by total number of deposits
Reserve requirment
One of the 4 main functions of money and examples include but are not limited to: Currency, digital money, and payment services
Medium of exchange
An asset that can be saved, retrieved, and exchanged later without losing its purchasing power.
Store of value
It is required to be a member of the Federal Reserve System
National Bank
Type of security that shows ownership in a company
Stock
Provides a consistent way to express the value of different goods and services
Measure of value/unit of account
Ensures banks have enough moeny to meet customer withdrawals
Reserve Requirment
A unit used for the pricing of goods, services, and assets. It allows for easy comparison and economic measurement with consistency.
Measure of value/unit of account
Responsible for implementing the nation's monetary policy
Federal Reserve(FED)
A business where the profits get returned to members
Credit Union
Corporation
An historical example of this would be the Great Depression
Bank Run
Value comes from its use as a material
Commodity money
A national financial institution that has control over the production & distribution of money and credit
Central Bank
A system where currency is directly linked to gold
Gold standard
Member-owned, not-for-profit, and community focused with services such as saving accounts, loans, and mortgages
Credit Union
A flexible and cost-effective medium of exchange
Fiat Money
A government issued currency that isn't backed up by a physical commodity but the government
Fiat Money
Happens when people fear the bank will fail and often leads to liquidity crisis
Bank Run
Used when you have a sum of money that you won't need for a period of time and want to earn a higher interest rate of return from it.
Certificate of deposit
A way of measuring money that was abandoned in the Great Depression
Gold Standard
"Dual mandate" of promoting maximum employment and stability of prices
Federal Reserve