fundamental principles of money vocabulary

rent

A fee charged for the use of property or land

personal check

A hand-written document used to pay for purchases using funds in a personal checking account

Gold Standard

A monetary system in which paper money and coins are equal to the value of a certain amount of gold

interest

A sum paid or charged for the use of money or for borrowing money

wages

An amount of money paid to an employee at a specified rate per hour worked

Treasury Notes (T-Notes)

Are a type of government bond issued with shorter maturities than T-bonds Typically offered to investors with one-, five-, seven- or ten-year terms Interest rates are lower than those offered to T-bond investors T-note investors receive a six months interest payment, same as the T-bonds investors

fiscal policy

Government policy that attempts to manage the economy by controlling taxing and spending.

monetary policy

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

Earned Income

Money earned from working for pay

cash

Money in the form of bills or coins

Continentals

Paper money issued by Congress which was almost worthless due to inflation

capital gains

The positive difference between the purchase price of a stock and its sale price.

credit card

Type of card issued by a bank that allows users to finance a purchase

debit card

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

coin

a piece of metal, usually flat and round, that is used as money

Government Bonds

bonds issued by the government; tax exempt; obtained by loaning money to the government, which the government then uses to fund itself and pay off debts; pays back your money after a fixed amount of time, plus extra payments generated by interest

Dividens

cash payments from the corporation's profits on the stock they own

money

currency in paper form, such as government and bank notes, as distinguished from metal money

Unearned Income

money given to a person without the person having to work to receive it

transfer payments

payments by the government to households for which the government does not receive a new good or service in return

banknotes

promissory notes issued by a Federal Reserve Bank

Treasury Bills

short-term United States government obligation with a maturity of 4, 13, 26, or 52 weeks and a minimum denomination of $100

currencies

system of money in general use in a country

Money Demand

the amount that households and firms want to hold in currency and deposits

Salaries

the pay that employees receive over a fixed period, most often weekly or monthly

exchange rate

the price of one nation's currency in terms of another nation's currency

money supply

the quantity of money available in the economy

electronic funds transfer

the use of a computer-based system to move money from the drawer's account to the payee's account

Treasury Bonds (T-Bonds)

type of treasuries which have the longest maturities of all government bonds