Chapter 10- Money

Anything that is used as a medium of exchange, a unit of account, and a store of value?

• Fiat Money
• Currency
• Barter
• Money

Anything that is used to determine value in an exchange?

• Currency
• Store of value
• Medium of exchange
• Unit of account

Something that serves as a way to compare values?

• Currency
• Store of value
• Medium of exchange
• Unit of account

Objects that have value in themselves as well as their value as a means of exchange are called?

• Currency
• Commodity money
• Simple money
• Customs

Two units of the same type of money must be the same in terms of what they will buy, which is the principle of

• Functionality
• Value
• Pricing
• Uniformity

Money must have which of these characteristics

• Fragile, Plentiful
• Not easily moved, Not divisible
• Acceptable, Uniform
• Green, valuable

What is the gold standard?

• A system that uses actual gold coins as a country’s money
• A system in which the country’s money is backed with gold
• A currency system in which each dollar is worth 1/20th of a pound of gold
• A money system in which the paper currency is good in more than one country

During the “Wildcat” Era, between 1837 and 1863, banking in the United States was dominated by what kind of banks

• State-Chartered banks
• The national bank of the United States
• Small, independent banks with no charters
• Savings and loan banks

Fractional reserve banking is?

• Device that allows it holder to buy goods based on a promise to pay
• Specific type of loan that is used to buy real estate
• System in which banks are split into smaller banks to allow people more access
• System that keeps only a small part of a deposit on hand and lends out the rest

What does it mean if something in economics has liquidity?

• The asset can be easily traded for water
• The asset can be easily turned into cash
• The asset can be a solid or a gas depending on the temperature
• The asset takes a long time to be turned into something the consumer can use