| A | B |
|---|
| medium of exchange | one of 3 functions of money(anything accepted in exchange) |
| store of value | allows people to preserve money for future use. |
| measure value | allow it to serve as a common denomination |
| commodity | money that has an alternative use as commodity;ex.gunpowder |
| fiat double | money by government decree |
| barter economy | moneyless economy that relies on trade |
| monetary unit | standard unit of currency |
| legal tender | fiat currency that must be accepted |
| gold standard | could be exchanged for a specified amount of GOLD |
| Federal reserve system | privately owned & publicly controlled central bank of the united states |
| Central Bank | A"Bankers' Bank" |
| Federal reserve note | replaced all other types of federal currency |
| run on the bank | closure |
| Bank Holiday | all banks closed to prevent bank runs |
| commerical bank | exclusive right to offer checking accounts |
| demand deposit accounts | funds can be removed by writing a check |
| thift institution | institutions that are catered to savers |
| NOW account | type of interest account that pays interest |
| saving and loan | depository institution that invested home mortages |
| saving banks | a bank that competes with other banks |
| Share draft account | checking account offered by a credit union. |
| deregulation | relaxtion of government regulations on business activities |
