The Basics
Anything customarily used as a medium of exchange, a unit of accounting, and a store of exchange.
What is money?
Durable, portable, divisible, stable in value, scarce, and acceptable.
What are the characteristics of money?
The year that Congress established the First Bank of the United States and gave it a 20-year charter.
What is 1791?
The account in which deposited money can be withdrawn at any time by writing a check.
The use of money in exchange for goods or services.
What is medium of exchange?
A medium of exchange such as cattle or gems that has value as a commodity or good aside from its value as money.
What is commodity money?
The most serious banking panic of the twentieth century.
What is the Great Depression?
The money deposited in a bank that can be withdrawn at any time by presenting a check.
What are checkable deposits?
The exchange of goods and services for other goods and services.
The money that is backed by an item of value, such as gold or silver.
What is representative money?
What is overdraft checking?
The mutual savings banks, S&Ls, and credit unions that offer many of the same services as commercial banks.
What are thrift institutions?
The use of money as a yardstick for comparing the values of goods and services in relation to one another.
What is unit of accounting?
What is fiat money?
The system of putting onto computers all the banking functions that in the past were handled on paper.
What is electronic funds transfer (EFT)?
The device used to make cashless purchases; money is electronically withdrawn from the consumer's checkable account and transferred directly to the store's bank account.
What is a debit card?
The use of money to store purchasing power for later use.
What is store of value?
The money that by law must be accepted for payment of public and private debts.
What is legal tender?
The unit that allows consumers to do their banking without the help of a teller.
What is the automated teller machine (ATM)?
What are near moneys?