1. Budget defecit-the difference between what a government spends and what it colldcts in taxes in a given period 2. Federal budget-the budget of the federal government 3. Federal surplus or Federal defecit-federal government recipts minus expenditures 4. Structural defeicit-the deficit that remains at full employment 5. Commoditiy monies-items used as money that also have intrinsic value in some other use. 6. Fiat money or Token money-items designted as mmoney that are intrinisciall worthless 7. M1 money or Transcation money-money that can be directyly used for transcations 8. Money multiplier-the multiple by which deposits can increase for every dollar increase in reserves equal to 1 diveded by required reserved ratio 9. Required resereved ratio- the percentage of its total deposits that a bank must keep as reserves at the federal reserve 10. Interest –the payments made for the use of money the fee that borrowers pay to lenders for the use of their funds. 11. speculation motive- one reason for holding bonds instead of money because the market
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