Krueger, Explorations in Economics 1e, Module 47

Money

Anything that is widely accepted in exchange for goods and services.

Representative money

Money has no value of its own but can be exchanged for something of value.

Commodity money

Money that has value apart from its use as money.

Fiat money

Money that has value because the government has ordered that it be accepted in payment of debts.

Currency

Paper money and coins.

medium of exchange

Something people acquire for the purpose of payment for goods and services.

store of value

Something that can be saved and will hold its value relatively well over time.

M2

A measure of the money supply that includes M1 along with forms of money that are less easily converted to cash.

M1

A measure of the money supply that includes only the forms of money that are readily available to spend: cash, checking account deposits, and traveler's checks.

unit of account

A standard measure used to set prices and make economic calculations.

money supply

The amount of money available for the purchase of goods and services.

Barter

The exchange of goods or services for other goods or services without the use of money.