| A | B |
|---|
| Near money | Savings accounts and time deposits (CD)s |
| Currency | Coins and paper bills- for money |
| Specie | Bills of credit |
| Commodity Money | An item that has a value of its own (as a commodity) and that is also used as money. |
| Store of Value | Two conditions must be met. First money must be non-perishable. Second the money must keep its value over time. |
| Standard of Value | Money provides people with a way to measure the relative value of goods and services by comparing their prices. |
| Medium of Exchange | Is any item that sellers accept as payment for goods and services. |
| representative money | when an item can be exchanged for another item of equal value |
| fiat money | when an item has value because the government decrees it |
