History of Money

________ is anything that people will accept as payment for goods and services.

• ATM

• M2

• money

• national bank

Money makes trade easier by serving as a _________.

• medium of exchange

• M2

• barter

• national bank

As a _______, money allows people to compare the prices of goods and services.

• store of value

• currency

• demand deposits

• standard of value

Money must be a ________, or something that holds its value over time.

• store of value

• debit card

• gold standard

• firat money

Gold coins and salt are both examples of ________.

• gold standard

• commodity money

• fiat money

• M1

Most money in the world today is _________, which has no tangible value but is declared by the government to have worth.

• fiat money

• commodity money

• gold standard

• representative money

_______ consists of _______, which includes paper money and coins and ________, which is another name for checking accounts.

• M1; currency; demand deposits

• M2; money; near money

• M1; currency; debit card

• M2; currency; fiat money

Savings accounts and time deposits are called _______ because they can be converted into cash easily.

• demand deposits

• near money

• fiat money

• debit card

______ allows banks to hold only part of their deposits and make loans based on the rest.

• the President

• barter

• M2

• Fractional Reserve Banking

The Federal Reserve Bank is the central _______ in the nation.

• Fractional Reserve Banking

• national bank

• standard of value

• barter