Across
- 2. of account A measure used to set prices and make economic calculations.
- 5. A form of electronic money used on the internet for purchasing goods or services.
- 6. to maturity The total interest rate earned on a bond if it is held until the very end of its term.
- 8. money Money made up of precious metals or another valuable good that has intrinsic value.
- 10. The most liquid measure of money, typically consisting only of currency in circulation and bank reserves.
- 12. (Monetary Base) The total amount of currency in circulation plus the reserves held by banks at the central bank.
- 13. An extreme and rapid period of inflation, typically exceeding 50% per month.
- 16. cost The time and money spent in carrying out an exchange of goods, services, or financial assets.
- 18. card A card that allows for the electronic transfer of funds directly from a bank account to a merchant.
- 19. A narrow measure of the money supply that includes currency, traveler's checks, and demand deposits.
- 20. money (e-money) Money that exists only in electronic form and is stored in banking computer systems.
- 22. A broader measure that includes everything in M1 plus "near money" (savings deposits, money market funds).
- 23. interest rate The interest rate adjusted for expected inflation (r = i - π^e).
- 24. Paper money (such as banknotes) and coins.
- 26. card A prepaid card (like a gift card) that represents a specific amount of money.
- 29. system The method or infrastructure used for conducting transactions in the economy.
- 31. money Paper currency decreed by a government as legal tender but not convertible into coins or precious metals.
Down
- 1. theory of money The theory that nominal income is determined primarily by the quantity of money in the economy.
- 3. card A plastic card containing a computer chip that can be loaded with digital cash.
- 4. of money The average number of times per year that a unit of currency is spent on buying goods and services.
- 7. preference theory A theory developed by John Maynard Keynes stating that the interest rate is determined by the supply and demand for money.
- 9. An even broader measure including M2 plus large-denomination time deposits and institutional funds.
- 10. theory The study of how changes in the money supply affect the aggregate economy (inflation, output, etc.).
- 11. A flow of earnings per unit of time (e.g., salary per month).
- 12. of exchange Anything that is used to pay for goods and services.
- 14. The relative ease and speed with which an asset can be converted into a medium of exchange.
- 15. money balances The quantity of money expressed in terms of the goods and services it can buy (M/P).
- 17. interest rate The interest rate as it is usually reported, without adjustment for inflation.
- 21. of exchange The mathematical identity M × V = P × Y (Money × Velocity = Price Level × Output).
- 22. aggregates The various measures of the money supply (M0, M1, M2, etc.) defined by a central bank.
- 25. The funds in transit between the time a check is deposited and the time the money is actually withdrawn from the payer's account.
- 27. The total collection of assets (property, stocks, etc.) that serve to store value, minus liabilities.
- 28. loan A loan where the borrower repays the principal plus an additional interest payment at the maturity date.
- 30. of value An asset that maintains its purchasing power over time.