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Part 2. Matching: Match the Key terms in Column A with the definitions in Column B by writing the block (upper) case letter of your
Part 2. Matching: Match the Key terms in Column "A" with the definitions in Column "B" by writing the block (upper) case letter of your choice under column "A" and match the definitions in column "B" with the meanings or examples or real world applications in column "C" by writing the small (lower) case letter of your choice under column "B" Column "A" Column "B" Column "C" 1. Money A. An interest-earning account at a mutual fund company, for which a letter of a. Narrow definition of the money supply that involves cash, your minimum balance is usually required and most of which offer limited travelers checks and checking deposits 2. Barter check-writing privileges. Only retail MMMFs are part of M2 b. Fiat or Paper money in circulation. 3. Medium of Exchange B. In a barter economy, a requirement, which must be met before a trade can C. United States notes & national bank notes issued by the Fed. be made. It specifies that a trader must find another trader who at the same d. Also known as "Demand Deposits" or "Checking Accounts" 4. Unit of Account time is willing to trade what the first trader wants & wants what the first trader has e. Broader definition of the money supply that includes M1 and Time, Saving and other deposits. 5. Store of Value C. Deposits on which checks can be written. D. Exchanging goods and services for other goods and services without the f. A cross between saving and checking deposit that typically 6. Double Coincidence pays a higher interest rate than a savings account, and which use of money. of Wants provides the account holder with limited check-writing ability. E. A banking arrangement that allows banks to hold reserves equal to only a 9. A type of fixed income fund that invests in debt securities M1 fraction of their deposit liabilities. (bonds) characterized by their short maturities & minimal 8. Currency F. Currency held outside banks + checkable deposits + Travelers Checks. credit risk. G. The ability of an item to hold value over time; a function of money. h. It is a banking system in which only a fraction of bank 9. Federal Reserve H. An interest-earning account at a commercial bank or thrift institution. deposits are backed by actual cash on hand as determined Notes Normally, checks cannot be written on savings deposits, and the funds in a by the Fed. savings deposit can be withdrawn at any time without a penalty payment. 1. An account at a bank that helps to save & yields interest 10. Checkable Deposits I. Anything that is generally acceptable in exchange for goods and services; a payment to depositors. 11. M2 function of money. An account at a bank to keep the money for a specified period J. An interest-earning deposit with a specified maturity date. Time deposits of time in exchange for higher deposit rate payment. 12. Savings Deposit are subject to penalties for early withdrawal, that is, withdrawal before the Example: Certificate of Deposits (CDs) maturity date. Small-denomination time deposits are less than $100,000 K. Exchanging goods for other goods before the emergence 13. Time Deposit K. Coins and Paper Money. of money. 14. Money Market Deposit _ L. An interest-earning account at a bank or thrift institution, for which a 1. One of the functions of money as a means to conduct minimum balance is usually required & most of which offer limited check- transaction. Account(MMDA) writing privileges. m. One of the functions of money as a means to compare and M. Paper money issued by the Federal Reserve. contrast the value of different commodities 15. Money Market Mutual N. Any good that is widely accepted for purposes of exchange and the n. One of the functions of money as a means to preserve purchasing power for the future. Fund (MMMF) repayment of debt. O. M1 + savings deposits (including money market deposit accounts) + O. Any thing used as medium of exchange. 16. Fractional Reserve small-denomination time deposits + money market mutual funds (retail). P. A pre conditions for barter to happen, that is, reciprocity or simultaneous interest for the goods that the two parties have Banking P. A common measure in which relative values are expressed; a function of to offer. money
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