| A | B |
|---|
| medium of exchange | the means of trading one product for another. |
| barter | the exchange of goods and services. |
| store of value | holding value over time. |
| commodity money | money given value by the materials it is made from; gold, silver |
| flat money | money that is declared by the government and is accepted by the citizens as having worth. |
| M1 | currency incirculation, checking accounts, and traveler's checks. |
| M2 | M1 + savings accounts, money market accounts, and dollars held outside the U.S. in banks. |
| Federal Reserve System | an independent agency of the U.S. government that coordinates the activities of all financial institutions in the country. |
| reserve requirement | the % of deposits that each bank must hold in reserve with the Fed. |
| stability in value | money should be worth the same today as next week. |
| scarcity | what contributes to the value of money. |
| portability | easily carried from one place to another, portable |
| durability | should be able to last a long time. |
| uniformity | each monetary unit must be equal to another unit. |
| divisibility | shoould be able to be broken up in equal parts. |
| acceptability | must be readily taken in society by everyone. |
| member bank | banks that belong to the Federal Reserve System |
| dual banking system | allows banks to obtain charters from either the state or the federal government. |
| specie | money in the form of coins made of gold or silver. |
| greenbacks | paper money printed with green ink. |
| gold standard | monetary unit equivalent to, or can be exchanged for gold. |
| bank holiday | a brief peroid in which all banks were required to close. |
| regulation Q | federal requirement that set the maximum interest rate on savings accounts. |
| regulation Z | truth and lending disclosures extended to individuals by businesses. |
