Econ Unit 4

Representative money

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

• Paper money that is backed by something tangible.

• Money that has intrinsic value based upon the material it is made from.

Fiat Money

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

• Paper money that is backed by something tangible.

• Money that has intrinsic value based upon the material it is made from.

Commodity Money

• Money that has value because a government declares it to be so and the citizens accept that it has worth.

• Paper money that is backed by something tangible.

• Money that has intrinsic value based upon the material it is made from.

The United States Dollar is an example of

• Representative Money

• Fiat Money

• Commodity Money

A good that wears out or is used up in three years or less.

• Durable

• Nondurable

• A Ford

Functions of Money: Comparing prices of goods and services

• Medium of exchange

• Making it rain

• Standard of value

• Store of Value

Functions of Money: Saving money for a future purchase

• Medium of exchange

• Making it rain

• Standard of value

• Store of Value

Functions of Money: Using money allows consumers to purchase goods/services from producers without requiring a "double coincidence of wants"

• Medium of exchange

• Making it rain

• Standard of value

• Store of Value

Exports - Imports =

• Domestic Goods

• Supports

• Net Exports

• Reports

market value of all goods and services produced within a nation in a given time period

• Gross Domestic Product

• Stock Market

• Earnings Report