Money and Banking

3. banks chartered by the national government
5. anything people will accept as payment for goods and services
10. Value is from the type of material in which it is composed
11. savings accounts and time deposits that can be converted easily
12. checking accounts; can be converted to currency “on demand”
15. system which basic monetary unit is equal to the amount of gold
16. small, light, easy to carry
17. cards that represent money that the holder has on deposit with the issuer, such as a department store
19. having features, markings that are recognizable
20. money should be in short supply or it will not be worth anything.
22. exchanging goods and services for other goods and services
23. something that holds its value over time
24. It must be a valid form of exchange

1. banks chartered, licensed, by state governments
2. means through which goods and services can be exchanged
4. are electronic devices that allow bank customers to make deposits, withdrawals, and transfers and check their account balances at any time without seeing a bank teller
6. the value of the amount of money should stay the same.
7. so change can be made (Ex: Dollar can be divided into pennies, nickels, ect.)
8. Paper money backed by something tangible- such as good and silver- that gives it value
9. determines the economic worth in the exchange process
13. sturdy enough to last throughout transactions
14. only has value because government has issued fiat, order saying its valuable
18. paper money, coins
21. drafts can be purchased in a number of amounts and redeemed in many parts of the world