AP®︎ Macroeconomics: Topic 4.3 Flashcards

Any asset accepted as payment for goods, services, or debts.

Currency with value by government acceptance, not from a nonmonetary use.

An item used as money that also has an alternative nonmonetary use.

Medium of exchange, unit of account, and store of value.

Something widely accepted for buying and selling goods and services.

A standard measure that allows prices and values to be compared.

Something that keeps purchasing power over time if inflation is low.

The ease with which an asset can be converted into cash.

Currency, coins, checkable deposits, and traveler's checks; the most liquid money measure.

M1 plus savings deposits, small time deposits, and retail money market funds.

Currency in circulation plus bank reserves held by banks.

The total amount of money in the economy, commonly measured by M1 and M2.

A short-term loan used for purchases, not an asset counted as money.