Economics chapter 10
Medium of exchange
A means through which goods and services can be exchanged
What did the National Banking Act of 1863 set up?
A system of national banks and a national currency
What are the advantages and disadvantages of electronic banking?
Advantages: convenience Disadvantages: hackable
Money
Anything that people will accept in exchange for goods or services
A major result of bank deregulation in the 1980's and the 1990's was hundreds of...
Bank mergers
Both seashells and corn have been used as money in the past. Which do you think is a better choice?
Corn. You can use individual kernels as currrency
The difference between credit cards and debut cards is that...
Credit cards are loans, while debit cards are withdrawals of existing funds
Automatic teller machines (atms) let customers...
Deposit and withdrawal funds at locations other than the bank
In what ways does the federal government act to safeguard the money of individual citizens?
FDCX, associations protected. They back our money. Federal reserve
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 to take savings deposits and provide...
Home mortgage loans
Commodity money
Money that has intrinsic value based on the material form from which it is made
Representative money
Money that is backed by something tangible
Fiat money
Money that us declared by the government to have worth
Currency
Paper money and coins
A mortgage allows a consumer to...
Purchase a house without paying the whole value up front
Near money
Savings accounts and time deposits that can be converted into cash relatively easily
Store of value
Something that holds its economic worth over time
Barter
The exchange of goods and services without using money
The term electronic banking generally refers to the use of...
The internet and computers to do bank transactions at home
Standard of value
The measurement of economic worth in the exchange process
For what purpose was the First Bank of the United States created?
To issue a national currency, control the money supply, and lend money
What is the purpose of the Federal Reserve System?
To make loans to banks, issue currency, and regulate the money supply