| A | B |
|---|
| an economy in which trades are made in goods and services instead of money | barter economy |
| the situation in which each of two parties to an exchange has what the other wants. | double conincidence of wants |
| a good that is widely accepted for purposes of exchange | money |
| anything that is generally acceptable in exchange for goods and services | medium of exchange |
| a common measurement in which values are expressed | unit of account |
| something with the ability to hold value over time | store of value |
| a banking arrangement in which banks hold only a fraction of their deposits and lend out the remainder | fractional reserve banking |
| the total supply of money in circulation, composed of currency, checking accounts, and traveler's checks | money supply |
| coins issued by the U.S. Treasury and paper money issued by the Federal Reserve system | currency |
| paper money issued by the Federal Reserve system | Federal Reserve Note |
| a deposit that is withdrawnable on demand and transferable by means of a check | demand deposit |
| an interest-earning account | savings account |
| assets that can be easily and quickly turned into money | near-money |
| it can be used to withdraw funds at automated teller machines and to pay for purchases by electronically transfering funds from one account to another | debit card |
| currency+checking accounts+traveler's checks= | money supply |
| bad money drives good money out of circulation | Gresham's law |
