Money6 - Equilibrium - The state in a market when supply...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Money Terms 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.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Equilibrium - The state in a market when supply equals demand. Fiat Money - Money that has no intrinsic value, that is, its only value comes from the fact that a governing body backs and regulates the currency. Fischer Effect - The point for point relationship between changes in the money supply and changes in the inflation rate. Inflation - The increase of the price level over time. Interest - Money paid by a borrower to a lender for the use of a sum of money. Interest Rates - The percent of the amount borrowed paid each year to the lender by the borrower in return for the use of the money. Liquidity - The ease with which something of value can be exchanged for the currency of an economy. Medium of Exchange - An item used commonly to trade for goods and services. Money Supply - The quantity of money in an economy. In the US this is controlled through policy by the Fed....
View Full Document

This note was uploaded on 02/09/2012 for the course ECO ECO2013 taught by Professor Jominy during the Fall '08 term at Broward College.

Ask a homework question - tutors are online