10.8 Key Terms
Key Terms
Something of value that is owned and can be used to produce something.
An accounting tool that lists assets and liabilities.
An inefficient system of trading one good or service for another.
Accounts that the depositor has committed to leaving in the bank for a certain period of time. Also called time deposits.
Currencies with values backed up by gold or another commodity held at a bank.
Items which have a value from use as something other than money. Examples include: gold, silver, cowrie shells, cocoa beans, etc.
One person wants to buy exactly what one person wants to sell.
Money with no intrinsic value but is declared by a government to be the legal tender of a country.
An institution that amasses funds from one group and makes them available to another.
A debt or something you owe.
How quickly an asset can be used to buy a good or service.
A supply of money which includes assets that are the most liquid such as cash, checkable deposits, and traveller's cheques.
A supply of money which included M1 plus some less liquid assets including savings and time deposits, certificates of deposit, and money market funds.
The deposits of many individual investors are pooled together and invested in a safe way, such as short-term government bonds.
The ratio of the change in money supply to the initial change in bank reserves.
The total quantity of money in the economy at any one time.
The interest rate that large financial institutions receive or pay on loans from one day until the next.
The interest rate that banks and lenders use to determine the interest rates for many types of loans and lines of credit.
In the long run the price level moves in proportion with changes in the money supply, at least for high-inflation countries.
Bank accounts on which you cannot write a cheque directly.
The ruler by which other economic values are measured.
