Money at Work
A customer hands a cashier $10 for lunch. Money performs this function.
What is a medium of exchange?
Gold and Silver coins have this collective name.
What is specie?
A bank that received its charter from a state government has this name.
What is a state bank?
This card normally takes purchase funds directly from a linked bank account.
What is a debit card?
Money's convenience for carrying in a wallet illustrates this characteristic.
What is portability?
Prices of $25 for shoes and $50 for a jacket let shoppers compare costs through this function.
What is a measure of value or unit of account?
This type of money gets its value from government decree.
What is fiat money?
A commercial bank chartered under the National Banking System has this name.
What is a national bank?
This type of account lets customers withdraw funds on demand and commonly write checks.
What is a checking or Demand Deposit Account?
Exchanging a $20 bill for smaller bills illustrates this characteristic.
What is divisibility?
Keeping earnings to spend next month illustrates this function of money.
What is a store of value?
gold qualifies as this type of money because it has uses apart from buying things.
What is commodity money?
Banks seek loans from this kind of institution, sometimes called a banker's bank.
What is a central bank?
Carrying an unpaid credit card balance commonly results in these borrowing costs.
What are interest charges?
This event occurs when many depositors rush to withdraw their funds as the same time.
What is a bank run?
Money solves this problem of barter: each trader must want exactly what the other offers.
What is the double coincidence of wants?
This digital currency records ownership in a computerized ledger.
What is cryptocurrency?
The National Banking System, established in this year, helped standardize currency and banking practices.
What is 1863?
A bank may assess this fee when it pays a transaction that exceeds the account's available balance.
What is an overdraft fee or insufficient funds fee?
This federal agency insures eligible deposits at insured commercial banks.
What is the FDIC?
Economists use M1 and M2 as different measures of this.
What is the money supply?
Under this monetary system, a unit of currency can be exchanged for a specified quantity of gold.
What is the gold standard?
Before a uniform national currency, private banknotes complicated trade because these two qualities could vary among notes.
What are acceptance and reliability?
Banks organized as corporations can raise funds by selling these ownership interests.
What are shares of stock?
Under an assumed 10 percent reserve requirement, a bank with $8,000 in deposits must hold this amount.
What is $800?