Topic 2 3

2. The total return anticipated on a bond if it is held until it matures.
4. The interest rate adjusted for inflation, calculated as the nominal rate minus inflation.
7. The total stock of assets owned by a person or household at a single point in time.
8. A payment card that directly withdraws funds from the user's bank account when used.
10. Money's value stored electronically, like in a bank database or on a digital card.
12. Extremely rapid and out-of-control inflation, often exceeding 50% per month.
15. Money without intrinsic value that is declared legal tender by a government decree.
16. Categories measuring the total money supply in an economy, from narrow to broad.
17. The expenses, beyond the price, incurred in trading or exchanging an asset.
21. Keynes's theory that interest rates are determined by the supply and demand for money.
24. The total value of all outstanding checks that have not yet been cleared by the bank.
26. A theory stating that changes in the money supply directly cause proportional changes in the price level.
27. A good used as money that also has intrinsic value in other uses (e.g., gold, cigarettes).
28. The study of how money, central banking, and the financial system affect the economy.
29. A loan where the borrower repays the principal plus interest in a single payment at maturity.

1. A card with a fixed monetary value pre-loaded onto it, like a gift card.
3. The function of money that provides a common standard for measuring value in an economy.
5. An early form of digital money designed for anonymous transactions over the internet.
6. The primary function of money that allows it to be used to buy and sell goods and services.
9. The interest rate unadjusted for the effects of inflation.
11. A physical card with an embedded microchip that can store and process data for multiple applications.
13. The methods, procedures, and rules for transferring money between parties in an economy.
14. MV = PY, a formula stating that money supply times velocity equals price level times output.
18. The ease and speed with which an asset can be converted into cash without losing value.
19. Notes and coins in circulation that make up the physical component of a money supply.
20. The average frequency with which a unit of money is spent on new goods and services in a period.
22. The flow of money or earnings received over a specific period, like a year.
23. The purchasing power of the money supply, calculated as M divided by the price level (M/P).
25. A function of money allowing it to hold purchasing power for future use.