Medium of exchange

The fact that money is acceptable as a means of purchasing goods and services without engaging in barter is an example of its ______ function.

store of value

The fact that money "enables people to transfer purchasing power from the present to the future" refers to the ______ function of money.

unit of account

The fact that the values of different goods and services can be expressed in terms of a single measure, such as dollars, reflects the _______ function of money.

credit cards

Are not classified as money, but rather a short-term loan from the bank.

token money

coins of regular issue whose face value is greater than their intrinsic value

checkable deposits

money deposited in a bank that can be withdrawn at any time by presenting a check

near-monies

assets that can be easily converted into M1 because they are highly liquid

money market deposit account

account that pays relatively high rates of interest, requires a minimum balance, and allows immediate access to funds

money market mutual fund

a fund that pools money from small savers to purchase short-term government and corporate securities

legal tender

Any kind of money that a creditor must by law accept in payment for debts

federal reserve system

The country's central banking system, which is responsible for the nation's monetary policy by regulating the supply of money and interest rates

securitization

Pooling loans into standardized securities backed by those loans, which can then be traded like any other security.

two main functions of the central bank

-Economic stability and growth
-Finanical stability

money multiplier equation

M = 1/reserve requirement

excess reserves

actual reserves - required reserves