AP Macro Unit 4 Vocab #1

Front

Fiat Money

Back

Performs the function of money but has no other value or uses.

Front

Commodity Money

Back

Performs the function of money and has intrinsic value.

Front

Money:

Back

Anything generally accepted for goods/services.

Front

Income

Back

a flow of earnings per unit of time

Front

Wealth

Back

the total collection of assets

Front

Double Coincidence of Wants

Back

Before trade, each trader must have something the other wants.

Front

Liquidity

Back

Ease of accessing and using an asset as a medium of exchange.

Front

A Store of Value

Back

Stores purchasing power for the future.

Front

A Unit of Account

Back

acts as a measurement of value

Front

A Medium of Exchange

Back

Used to buy goods and services without barter complications.