ch10-1

3. of exchange- money or other substance generally accepted as payment for goods and services; one of the three functions of money
5. money in the form of gold or silver coins
7. whose funds can be removed from a bank or other financial institution by writing a check or using a debit card.
8. definition of money supply conforming to money’s role as a medium of exchange and store of value; components include M1 plus savings deposits, time deposits, and money market funds.
10. reserve notes- paper issued currency issued by the fed that eventually replaced all other types of federal currency.
11. money- money that has an alternative use as an economic good, gunpower,flour,corn,etc.
13. definition of money supply conforming to money’s role as medium of exchange; components include coins,currency,checks,other demand deposits, traveler’s checks.

1. money- money by government decree: has no alternative use or value as a commodity
2. an overthrow of government
4. of value- one of the three functions of money that allows it to serve as a common denominator to measure value
6. of value- one of the three functions of money allowing people to preserve value for future use.
9. deposit accounts (DDAs)
10. reserve system (fed)-privately owned, publicly controlled,central bank of the United States.
12. economy- moneyless economy that relies or trade or barter.
13. unit- standard unit of currency in a country's money supply American dollar, British pound, etc.