chapter 10 economics
the first bank of the United states was created by
Alexander Hamilton
one example of a loan is a purchase made with
a credit card
one example of a stored value card is
a gift card
What did the national banking act of 1863 set up
a system of national banks and national currency
fractional reserve banking
allows banks to issue loans based on a reserve requirement set by the Fed
a major result of bank deregulation in the 1980s and 1990s was hundreds of
bank mergers
the exchange of goods amd services without using money
barter
demand deposits are
checking accounts
money that had intristic value based on the material from which it is made
commodity money
money who's value is based upon the type of material it is made from
commodity money
the difference between credit cards and debit cards is that
credit cards are loans, while debit cards are withdraws of existing funds
the main difference between a credit union and a bank is that
credit unions have membership requirements
paper money and coins
currency
automatic teller machines let customers
deposit and withdraw funds at locations other than the bank
money that is declared by the government yo have worth
fiat money
from 1836 to 1863, there was no national oversight of banking. what was the result
financial panics and economic instability
the two original purposes of savings and loans were go take savings deposits and provide
home mortgage loans
wildcat banks were banks
in remote areas that issued bank notes of questionable value
For what purpose was the first national bank of the United states created
issue a national currency, control the money supply, and lend money
the means through which goods and services can be exchanged
medium of exchange
anything that people will accept in exchange for goods and services
money
one of the advantages of bank mergers is
more bank branches
a system of national banks and the issuing of a national currency were the result of the
national banking act of 1863
savings accounts and time deposits that can be converted into cash relatively easily
near money
one of the physical properties of money is
portability
a mortgage allows a consumer to
purchase a house without paying the whole value up front
money that is backed by something tangible
representative money
automatic teller machines are good for banks because they
save money because machines do transactions more cheaply than humans
one of the economic properties of money id
scarcity
the measurement of economic worth in the exchange process
standard of value
something that holds economic worth over time
store of value
the term electronic banking generally refers to the use of
the internet and computers to do bank transactions at home
What is the purpose of the federal reserve system
to make loans to banks, issue currency, and regulate the money supply
the federal reserve system is
twelve regional banks with a central decision-making board
the main difficulty of a barter system is finding
two people who have what each other wants