Exam2 - Flashcards(3)

Exam2 - Flashcards(3) - The flashcards are formatted for...

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Double Coincidence of Wants Barter
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The exchange of one good or service for another. The unlikely occurrence that two people each have a good or service that the other wants.
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Medium of Exchange Money
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The set of assets that people regularly use to buy goods and services from other people. An item that buyers give to sellers when they want to purchase goods and services.
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Store of Value Unit of Account
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The yardstick people use to post prices and record debts. An item that people can use to transfer purchasing power from the present to the future.
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1.Medium of Exchange 2.Unit of Account 3.Store of Value Medium of Exchange
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Primary function of money; greases the wheels of exchange. Functions of Money:
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Fiat Money Commodity Money
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Money that takes the form of a commodity with intrinsic value. Money with no intrinsic value; used as money because of government decree.
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Money Supply Commodity and Fiat
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Kinds of money: Quantity of money available in the economy.
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Currency Money Stock
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i.e. Money Supply The paper bills and coins in the hands of the (non-bank) public.
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Currency and Demand Deposits Demand Deposits
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Exam2 - Flashcards(3) - The flashcards are formatted for...

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