Term
| double coincidence of wants |
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Definition
| two traders are willing to exchange their products directly |
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Term
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Definition
| anything that is generally accepted in exchange for goods and services |
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Definition
| anything that facilitates trade by being generally accepted by all parties in payment for good and services |
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Term
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Definition
| anything that serves both as money and as a commodity; money that has intrinsic value such as gold or silver coins |
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Term
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Definition
| a common unit for measuring the value of each good or service |
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Definition
| anything that retains its purchasing power over time |
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Definition
| people tend to trade away inferior money and hoard the best |
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Term
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Definition
| the difference between the face value of money and the cost of supplying it; the "profit" from issuing money |
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Definition
| money whose face value exceeds its cost of production |
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Definition
| a written order instructing the bank to pay someone from an amount deposited |
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Term
| fractional reserve banking system |
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Definition
| bank reserves amount to only a fraction of funds on deposit with the bank |
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Term
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Definition
| originally, pieces of paper promising a specific amount of gold or silver to anyone who presented them to issuing banks for redemption; today federal reserve notes are mere paper money |
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Term
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Definition
| bank notes that exchange for a specific commodity, such as gold |
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Term
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Definition
| money not redeemable for any commodity; its status as money is confered initially by goverment decree but eventually by common experience |
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