Econ Ch 10-11 Review

national banks are those banks that are

Receives, keeps, and lends money

which of the following is a service that banks offer

Objects that have value because the holder can exchange them for something else of value

the time at which payment to a bondholder is due 

Medium of exchange is anything used to determine value during the exchange of goods and service

the interest rate that a bond issuer will pay to a bond holder 

capital gains result in a financial gain for the seller

business that specializes in trading stock 

Greenbacks were paper bills printed during the Civil War in green ink 

Anything used as a medium of exchange, unit of account, and store of value

all the money available in the US economy is

a bond issued by a corporation to raise money for expansion 

the ability to use as, or directly converted to, cash

The exchange of one set of goods or services for another 

the nation's central banking system is the

which of the following is a component of M2

a portion of stock is a 

claim on the property or income of a borrower is a

Which of the following is not one of the three uses of money?

store of value means money keeps its value if it's stored, not used

Money that has value because the gov't says it's acceptable for paying debts 

loans that represent debt that the gov't must repay to an investor for lending it money 

the term used in the book for coins and paper bills

the use of assets to earn income or profit constitutes a(n)

salt, cattle, and precious stones are commodity money

investors suffer capital losses when they 

a put option is the option to

bond issued by a state or local government for highways and schools

An IOU is an example of 

which of the following statements is true?

a steady, extended rise in stock market

currency, demand deposits, other checkable deposits, and traveler's checks 

money that people can gain access to easily to pay for goods and services

difference between a lower selling price and a higher purchase price

investment is the use of assets to earn income or profit 

the price paid for the use of borrowed money 

yield is the annual rate of return on a bond if the bond were held to maturity 

during a bear market, investors sell because 

blue chip stocks are traded on the 

income stocks pay 

Durability, portability, divisibility, uniformity, limited supply, and acceptability are 

M1, savings accounts, and money market mutual funds 

Advantage: gov't could only issue currency if it had gold in the treasury to back it

A monetary system where paper money and coins are equal to the value of certain amount of gold