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
