Chapter 4- History of Money

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Across
  1. 3. money Precious metals, minerals and agricultural products. Something else other than money used as a medium of exchange is considered commodity money.
  2. 5. The ease in which money can be transported.
  3. 6. The ability to retain its original form over time.
  4. 9. Comprised of all checking account balances, cash, coins and traveler’s checks.
  5. 10. rate The price of using money.
  6. 13. Premium A form of additional compensation a borrower must provide to encourage investment in assets that cannot be easily/efficiently be converted into cash at fair market values.
  7. 15. The ability to be divided into smaller pieces.
  8. 16. Anything that acts as a medium of exchange, store of value, or standard of value.
  9. 17. Flat Paper and virtual money
Down
  1. 1. money An alternative to commodity money. (Ex. receipts for people that had gold deposited)
  2. 2. Stable price level or low levels of inflation.
  3. 4. Caused by too much money in circulation. Increases prices and makes most things expensive.
  4. 6. Risk Premium An additional amount a borrower must pay to compensate a lender for assuming the default risk.
  5. 7. The incentive in using money.
  6. 8. Risk The compensation investors for taking more risk.
  7. 9. of exchange Money being used for the purpose of buying and selling goods or services.
  8. 10. A payment for using/borrowing money.
  9. 11. Interest Rate The rate of interest that equates to the level of saving to the level of borrowing.
  10. 12. Standard - Money that is representative money that is baked by a fixed amount of gold.
  11. 14. The act of exchanging goods or services for another good or service.
  12. 16. Composed of everything within M1, alongside savings account balances, certificates of deposit, money market account balances and U.S dollars on deposit in foreign banks.