Bartering - Bartering - The trading of one good for...

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Bartering - The trading of one good for another. This requires the double Coincidence of wants, a condition met when two individuals each have different goods that they other wants. Commodity Money - Money that has an intrinsic value, that is, value beyond any value given to it because it is money. An example of this would be a gold coin that has value because it is a precious metal. Compound Interest - Interest that is paid on a sum of money where the interest paid is added to the principal for the future calculation of interest. Click here to see the Formula. Consumption - The purchase and use of goods and services by consumers. Currency - The form of money used in a country. Defaulting on the Loan - When a borrower fails to repay a loan leaving the lender without the money loaned. Demand for Money - The amount of currency that consumers use for the purchase of goods and services. This varies depending mainly upon the price level. Equilibrium
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This note was uploaded on 12/13/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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