Term
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Definition
| the direct exchange of one good for another |
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Term
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Definition
| an item or commodity that is agreed to be accepted in trade |
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Definition
| commodity money, representative money and fiat currency |
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Definition
| a wide variety of items used as money - such as salt, seashells, tea, fur, cattle, tobacco |
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Term
| Makes of first metal coins in western world |
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Definition
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| An example of commodity money is |
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Definition
| coins containg precious metals. traded because they held their value. |
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Term
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Definition
| tokens or pieces of paper (bills or receitps) that are not intrinsically valuable, but that can be exchanged for a specific commodity (such as gold or silver) |
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| Who were the first to use paper money as respresentative money |
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Definition
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Definition
| inconvertible paper stadard. similar to representative money except that it can't be redeemed for a commodity such as gold or silver (Federal Reserve Notes) |
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| Who is responsible for mainting the integrity of US currency by setting monetary policy |
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Definition
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Term
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Definition
| 1. recognition. 2. durability. 3. storability. 4. transportability. 5. divisibility. 6. Standardization. 7. Scarcity. |
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Term
| Explain recognition as it pertains to money |
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Definition
| consumers must recognize and accept a commodity as payment for goods and services. |
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Term
| Explain durability as it pertains to money |
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Definition
| must be rugged enough to withstand being passed through 1,000 of hands. |
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Term
| Explain storability as it pertains to money |
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Definition
| must be able to store without deterioration (gold and silver not livestock or plants) |
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Term
| Explain transportability as it pertains to money |
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Definition
| must be easy to carry. (coins not cattle) |
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Term
| Explain standardization as it pertains to money |
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Definition
| quality and value of commodity must be consistent. (old chickens vs young chickens - compared to old gold new gold) gold value the same |
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Term
| Explain scarcity as it pertains to money |
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Definition
| commodity must be scare and not easily reproduced to ensure value. |
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Term
| When was US dollar introduced? |
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Definition
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Term
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Definition
| 1. store of value. 2. medium of exchange. 3. unit of measure. |
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Term
| Explain store of value as it pertains to money |
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Definition
| must function as a way to store value so that consumers do not have to spend it the same day. |
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| Explain medium of exchange as it pertains to money |
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Definition
| must be accepted by consumers and sellers to be valid |
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Term
| Explain unit of mesure as it pertains to money |
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Definition
| money can be used to measure the value of goods and services through the mechanism of prices. |
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Term
| What was the first form of money to be used internationally |
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Definition
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Term
| What replaced greek coins |
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Definition
| Roman coins due to the rise of the Roman Empire |
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Term
| What equals 10 bronze roman coins |
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Definition
| 1 denarius silver coin = to a day's pay for a skilled tradesman |
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Term
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Definition
| metal coins made from one of the precious metals such as gold and silver |
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Term
| what invention lead to more stylized coins |
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Definition
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Term
| What impact did the screw press have on coin making |
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Definition
| the more elaborate coins were more difficult to reproduce thereby creating a more reliable value for the coin so that it could be used with confidence outside the country of origin. |
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Term
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Definition
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| What is the oldest central bank |
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Definition
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Term
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Definition
| The Federal Reserve System (the Fed). |
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Term
| When was the Federal Reserve System - the central bank of the US- founded and by whom? |
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Definition
| founded by Congress is 1913 |
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Term
| What is the banker's bank |
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Definition
| The Federal Reserve System (the Fed) |
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Term
| As the banker's bank what does the Federal Reserve System (the Fed) do? |
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Definition
| holds cash reserves, processes checks, provide electronic payments for commercial banks and other depository institutions. Serves as the banker and fiscal (financial) agent for the federal government. Supervises and regulates financial institutions. Conducts monetary policy for the nation. |
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