bankers' acceptance security
debt contract originated by a business and insured by a bank
capital flight
rapid movement of assets and money out of a nation's economy because of adverse conditions
central bank
institution that manages a country's or state's money supply, interest rates, and currency
commercial paper security
short-term note that originates from a corporation
deposit money
deposit that is payable on demand to the account holder by the financial institution
economic globalization
increasing interdependence of the world's economies
federal fund
fund that the Federal Reserve temporarily lends to institutions that have inadequate cash
fiat money
note that a government establishes, and backs the value of, as a valid form of payment by law
full-bodied money
currency that has a face value equal to the value of the substance from which it is constructed
globalization
assimilation of cultures, economies, and technologies from across the globe
gross domestic product (GDP)
general gauge of the overall economic status of a country in terms of goods and services produced by that country
inflation
continual increase in the average price levels of goods and services
M1 money supply
portion of the money supply that has the highest degree of liquidity
M2 money supply
entirety of the M1 money supply, as well as savings accounts, money market securities, and money market mutual funds
medium of exchange
mechanism that enables financial transactions
money
commonly accepted form of compensation for goods and services
money market mutual fund
investment portfolio made up of short-term debt securities
money market security
debt security that matures within a short period of time. Typically the term is a year or less.
negotiable certificate of deposit
security issued by banks of $100,000 or more that matures within one year of issuance
representative full-bodied money
note with a face value that originated from a quantity of precious metal
repurchase agreement
sale of a security where the seller promises to purchase back the security from the buyer at an agreed-upon price and date
standard of value
concept that ensures an equal measure of worth for monetary units
store of value
ability of money to continue to represent the same level of worth over time
tariff
tax placed on the imports and exports exchanged between countries
Treasury bill
government security issued by the U.S. Treasury representing a short-term debt obligation, with a relatively low interest rate and maturity period within one year
velocity of money
rate at which money flows through the economy