AP Macro Unit 4 Vocab #1

Fiat Money

• a flow of earnings per unit of time

• performs the function of money but has no other value or uses

• the total collection of assets

• performs the function of money and has intrinsic value

• anything that is generally accepted in payment for goods and services

Commodity Money

• a flow of earnings per unit of time

• performs the function of money but has no other value or uses

• the total collection of assets

• performs the function of money and has intrinsic value

• anything that is generally accepted in payment for goods and services

Money

• a flow of earnings per unit of time

• performs the function of money but has no other value or uses

• the total collection of assets

• performs the function of money and has intrinsic value

• anything that is generally accepted in payment for goods and services

Income

• a flow of earnings per unit of time

• performs the function of money but has no other value or uses

• the total collection of assets

• performs the function of money and has intrinsic value

• anything that is generally accepted in payment for goods and services

Wealth

• a flow of earnings per unit of time

• performs the function of money but has no other value or uses

• the total collection of assets

• performs the function of money and has intrinsic value

• anything that is generally accepted in payment for goods and services

Double Coincidence of Wants

• acts as a measurement of value

• allows you to store purchasing power for the future

• ease with which an asset can be accessed and used as a medium of exchange

• used to buy goods and services with no complications of barter system

• before trade can occur, each trader has to have something the other wants

Liquidity

• acts as a measurement of value

• allows you to store purchasing power for the future

• ease with which an asset can be accessed and used as a medium of exchange

• used to buy goods and services with no complications of barter system

• before trade can occur, each trader has to have something the other wants

A Store of Value

• acts as a measurement of value

• allows you to store purchasing power for the future

• ease with which an asset can be accessed and used as a medium of exchange

• used to buy goods and services with no complications of barter system

• before trade can occur, each trader has to have something the other wants

A Unit of Account

• acts as a measurement of value

• allows you to store purchasing power for the future

• ease with which an asset can be accessed and used as a medium of exchange

• used to buy goods and services with no complications of barter system

• before trade can occur, each trader has to have something the other wants

A Medium of Exchange

• acts as a measurement of value

• allows you to store purchasing power for the future

• ease with which an asset can be accessed and used as a medium of exchange

• used to buy goods and services with no complications of barter system

• before trade can occur, each trader has to have something the other wants