Terms : Hide Images
| 6360571948 | intrinsic value | the inherent worth of something, independent of its value to anyone or anything else | 0 | |
| 6360571949 | Store of value | an item that people can use to transfer purchasing power from the present to the future | 1 | |
| 6360571950 | Divisibility | large and small units | 2 | |
| 6360571951 | Fungibility | units are capable of mutual substitution (money) | 3 | |
| 6360571952 | reserve requirement | The specified minimum percentage of its checkable deposits that a bank or thrift must keep on deposit at the Federal Reserve Bank in its district or hold as vault cash. (increasing -> decreasing money supply, degreasing -> increasing money supply) | 4 | |
| 6360571953 | commodity money | objects that have value in themselves and that are also used as money | 5 | |
| 6360571954 | fiat money | Anything that is money because the government has decreed it to be money (doesn't have to have an intrinsic value) | 6 | |
| 6360571955 | vault cash | The currency a bank has in its vault and cash drawers. | 7 | |
| 6360571956 | liquidity | The ease with witch an asset can be converted quickly into cash with little or no loss of purchasing power. Money is said to be perfectly _____, whereas other assets have a lesser degree of liquidity. | 8 | |
| 6360571957 | M1 | the most narrowly defined money supply, equal to currency in the hands of the public and the checkable deposits of commercial banks and thrift institutions. (checking accounts), traveler's checks. | 9 | |
| 6360571958 | small time deposits | deposits of less than 100,000 | 10 | |
| 6360571959 | M2 | the most narrowly defined money supply, equal to M1 plus non-checkable savings accounts (including money market deposit accounts), small time deposits, and individual money market mutual fund balances. | 11 | |
| 6360571960 | travelers checks | special kinds of checks that are used instead of cash by travelers | 12 | |
| 6360571961 | M3 | equal to M2 plus large time deposits (deposits of $100,000 or more) | 13 | |
| 6360571962 | noncheckable savings account | a savings account against which no checks can be written. | 14 | |
| 6360571963 | money market deposit accounts (MMDAs) | interest earning accounts at banks and thrift institutions, which pool the funds of depositors to buy various short-term securities. | 15 | |
| 6360571964 | thrift institution | a savings and loan association, mutual savings bank or credit union. | 16 | |
| 6360571965 | discount rate | The interest rate on the loans that the Fed makes to banks | 17 | |
| 6360571966 | raising the discount rate | discourages banks from borrowing from reserves from the FED. | 18 | |
| 6360571967 | lowering the discount rate | encourages banks to borrow from the FED | 19 | |
| 6360571968 | federal funds rate | Interest rate banks charge each other for overnight loans | 20 | |
| 6360571969 | federal open market committee | the 12 member group that determines the purchase and sale policies of the Federal Reserve Banks in the market for U.S. government securities | 21 | |
| 6360571970 | proportional or "flat" taxes | a system that applies the same tax rate to every taxpayer regardless of income (ex: medicare) | 22 | |
| 6360571971 | regressive tax | A tax that takes a larger percent from low-income people than high income people (ex: social security) | 23 | |
| 6360571972 | progressive tax | Those whom make more money pay a higher percent of their income in tax | 24 | |
| 6360571973 | effective tax rate | What percent of a household/company ACTUALLY pays for tax. | 25 | |
| 6360571974 | money market graph | measures nominal interest rate, not real for monetary policy, not fiscal shifting SUPPLY not demand. |  | 26 |
