Economics 230 2
Terms
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- Check
- An instruction to the bank to take funds from one account and transfer them to another.
- Commodity Money
- Precious metals or other items with intrinsic value that are used as money.
- Credit Card
- A promise by a bank to lend the cardholder money in order to make a purchase
- Currency
- Paper money- dollar bills or euro notes.
- Currency in the hands of the public
- The quantity of dollar bills held by the nonbank public; part of M1.
- Debit card
- A card that provides instructions to the bank to transfer funds from the cardholder's account directly to a merchant's account.
- Demand Deposit
- Standard Checking accounts that pay no interest; part of M1.
- Electronic funds transfer (EFT)
- Movements of funds directly from one account to another over and electronic network.
- E-money
- Private money, as represented by a claim on the issuer which is stored on an electronic device.
- Eurodollars
- Dollar-denominated deposits outside the US; Eurodollars held by US citizens are part of M3.
- Fiat Money
- Currency with no intrinsic value, it has a consequence of government decree.
- Gross domestic product (GDP)
- The market value of final goods and sercices produced in the economy during a year.
- Inflation
- A sustained rise in the general price level; a situation in which the price of everything goes up more or less at the same time.
- Liquidity
- A measure of the ease with which an asset can be turned into a means of payment.
- M1
- The narrowest monetary aggregate, which measures the most liquid means of payment available: currency, travelers' checks, demand depostits and other checkable deposits.