The functions of money
Explain unit of accounting?
Use of money as a yardstick for comparing the values of goods and services in relation to one another.
what is commodity money?
A medium of exchange such as cattle or gems
When was the first bank of the united states made?
in between 1780's to 1792
What is a checking account?
A account in witch deposited funds can be withdrawed.
What is M1?
Narrowest definition of the money supply.
List one example for each function of money
Medium of exchange
Unit of Accounting
Store of Value
medium of exchange: currency
unit of accounting: Money
Store of value: someone earning money on their paycheck and then depositing in the bank later on
what is Representative Money?
Money backed by an item of value
what years does the second back of the united states starts to limit gold and silver?
1811 to 1816
What is a checkable deposits?
funds deposited in a bank.
What is M2?
Broader definition of the money supply.
What is a barter?
Exchange of goods and services for other goods and services.
what is legel tender?
money that by law must be accepted for payment of public and private debts
what year did the SBOUS end and cause a rise is state banks?
1830's to 1860's
Whats a Thrift Institutions?
Mutual savings banks, S&Ls, and credit union.
device used to make cashless purchases
What is money?
Anything customarily used as a medium of exchange.
What is fiat money?
Money that has value because a government flat, or order, has established it as a acceptable for payment of debts.
What money was issued to pay for the civil war?
Fiat Money
Where do you find a check number on the check?
At the bottom of a check, you will see three groups of numbers. The first group is your routing number, the second is your account number and the third is your check number.
What currency is M1?
how does inflation affects money as a store of value?
decreases the value of a dollar over time
Name a item of value that can be used for currency?
Paper money, gold, silver, cattle, ect.
In 1913 _______ created to regulate reserves and money supply and make loans to member banks.
Federal Reserve System
Where do you put the name of the place your paying to?
You put it on the "Pay to the order of" line.
What currecy is M2?
Includes everything in M1 plus savings deposits