Chapter 6 Vocab-Econ

anything that serves as a medium of exchange, a unit of account, and a store value

• mortgage

• money

• discount rate

• fiat money

anything that is used to determine value during the exchange of goods and services

• unit of account

• barter

• currency

• medium of exchange

the direct exchange of one set of goods or services to another

• barter

• money

• credit card

• discount rate

a means for comparing the values of goods and services

• barter

• financial asset

• financial system

• unit of account

anything used as money; today we use coins and paper bills as money

• investment

• currency

• money

• fiat money

consists of objects that have value in and of themselves and that are also used as money

• return

• yield

• mutual fund

• command money

makes use of objects that have value solely because the holder can exchange them for something else of value

• representative money

• reserves

• monetary policy

• return

A fiat is an order or decree. Fiat money also called "legal tender" has value because a government has decreed that it is an acceptable means to pay debts.

• money

• currency

• fiat money

• commodity money

the actions that the Federal Reserve System takes to influence the level of real GDP and the rate of inflation factor in macroeconomic performance

• discount rate

• monetary policy

• mortgage

• savings bond

deposits that a bank keeps readily available as opposed to lending them out

• returns

• principal

• reserves

• interest