10 Money, Banking, The Federal Reserve

an economy in which trades are made in goods and services instead of money

• barter economy

• medium of exchange

• loanable funds market

• Federal Reserve System

the costs associated with the time and effort needed to search out, negotiate and complete an exchange

• transaction costs

• barter economy

• demand deposit

• reserve account

a good that is widely accepted in exchange and in the repayment of debt

• money

• savings account

• transaction costs

• currency

anything that is generally acceptable in exchange for goods and services

• medium of exchange

• unit of account

• store of value

• money

a common measurement used to express value

• medium of exchange

• unit of account

• store of value

• money

Something with the ability to hold value over time

• medium of exchange

• unit of account

• store of value

• money

a banking arrangement in which banks hold only a fraction of their deposits and lend out the remainder

• fractional reserve banking

• demand deposit

• loanable funds market

• federal open market committee

paper money issued by the Federal Reserve System

• Federal Reserve note

• money

• currency

• money supply

the total supply of money in circulation composed of currency, checking accounts, and traveler's checks

• money supply

• currency

• demand deposit

• fractional reserve banking

coins issued by the U.S. Treasury and paper money (called Federal Reserve notes) issued by the Federal Reserve System

• currency

• money

• Federal Reserve note

• money supply