Money
anything that people commonly accept in exchange for goods and services.
Medium of exchange
any item that sellers accept as payment for goods and services.
Standard of value
money provides people with a way to measure the relative value of goods and services
Store of value
money can be saved, or stored for later use.
Durability
money's ability to be used over and over again.
Portability
money's ability to be carried from one place to another and transferred from one person to another.
Divisibility
money's ability to be divided into smaller units.
Stability in value
money's ability to maintain purchasing power.
Acceptability
money's ability to be widely accepted for goods and services.
Commodity money
an item that has a value of its own and that also is used as money.
Representative money
an item that has value because it can be exchanged for something else of value.
Fiat money
an item made into legal money by a government.
Currency
a system of money in general use in a country.
Demand deposit
Checking accounts held at a financial institution.
Money order
a check backed by the issuer for a pre-specified amount of money, and usually have a max limit of $1,000.
Cashiers check
a check written by a financial institution on its own money, and does not have a maximum limit.
Barter
exchange of goods or services for other goods or services without using money.
Gold standard
a government money system in which paper money and coins carry value in a specific amount of gold.
Federal deposit insurance corporation (FDIC)
a corporation insuring deposits in the United States against bank failures.
Liquidity
how quickly or easily assets can be made available into money.
Principle
the amount borrowed or loaned out to an individual or business by a creditor.
Interest
the amount owed on top of the principle for taking out a loan.
Debit card
a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.
Credit card
card issued by a bank, business, etc., allowing the holder to purchase goods or services on a temporary loan.
Default
the failure to make payments on a loan.
Mortgage
a transfer of rights to a piece of property in return for a loan of money and that is canceled when the loan is paid.