2. Barter check-writing privileges. Only retail MMMFs are part of M2. 3. Medium of Exchange B. In a barter economy, a requirement, which must be met before a trade can be made. It specifies that a trader must find another trader who at the same 4. Unit of Account time is willing to trade what the first trader wants & wants what the first trader has 5. Store of Value C. Deposits on which checks can be written. 6. Double Coincidence D. Exchanging goods and services for other goods and services without the of Wants use of money. E. A banking arrangement that allows banks to hold reserves equal to only a 7. M1 fraction of their deposit liabilities. F. Currency held outside banks + checkable deposits + Travelers Checks. 8. Currency G. The ability of an item to hold value over time; a function of money. 9. Federal Reserve - H. An interest-earning account at a commercial bank or thrift institution. Notes Normally, checks cannot be written on savings deposits, and the funds in a 10. Checkable Deposits savings deposit can be withdrawn at any time without a penalty payment. 1. Anything that is generally acceptable in exchange for goods and services; a 11. M2 function of money. J. An interest-earning deposit with a specified maturity date. Time deposits 12. Savings Deposit are subject to penalties for early withdrawal, that is, withdrawal before the maturity date. Small-denomination time deposits are less than $100,000. 13. Time Deposit K. Coins and Paper Money. 14. Money Market Deposit L. An interest-earning account at a bank or thrift institution, for which a minimum balance is usually required & most of which offer limited check- Account(MMDA) writing privileges. M. Paper money issued by the Federal Reserve. 15. Money Market Mutual N. Any good that is widely accepted for purposes of exchange and the Fund (MMMF) repayment of debt. O. M1 + savings deposits (including money market deposit accounts) + 16. Fractional Reserve small-denomination time deposits + money market mutual funds (retail). Banking P. A common measure in which relative values are expressed; a function of money