Unit 3 Review Money and Banking

Anything that's used to determine value during the exchange of goods and services

• Medium of Exchange

• Barter

• Money

• Store of Value

exchange of one commodity or service for another

 

• Medium of Exchange

• Barter

• Money

• Store of Value

Basic function is as an accepted medium of exchange, standard of value, and a store of wealth. Allows all goods and services to be valued in the same objective way: i.e. in relation to a monetary value.

 

• Medium of Exchange

• Barter

• Money

• Store of Value

Holds its value over a period of time

 

• Medium of Exchange

• Barter

• Money

• Store of Value

Government-issued coins and paper notes that may be used to exchange goods and services; essentially, the physical representation of money

• Currency

• Representative Money

• Fiat Money

• Commodity Money

Objects that have value because the holder can exchange them for something else of value

• Currency

• Representative Money

• Fiat Money

• Commodity Money

Money that has value because the government has ordered that it is an acceptable means to pay debts

• Currency

• Representative Money

• Fiat Money

• Commodity Money

A good that is used as a medium of exchange but also has intrinsic worth because it has other uses. Gold or silver coins are commodity money.

• Currency

• Representative Money

• Fiat Money

• Commodity Money

The total value of financial assets in the economy that are considered money. These are several different measures of the money supply, called monetary aggregates.

• Money Supply

• Gold Standard

• National Bank

• Bank

A monetary system in which paper money and coins are equal to the value of a certain amount of gold

• Money Supply

• Gold Standard

• National Bank

• Bank