Basic ecomonic terminology. Искренко Э.В - 5 стр.

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                 MONETARY SYSTEM

      1. Money — anything that is generally accepted in an economy
as a medium of exchange, a unit of account, a store of purchasing
power, and a standard of à deferred payment.
      2. Medium of exchange — money that is a convenient means of
exchanging goods and services without engaging in barter, what
sellers generally accept and buyers generally use to pay for a good
or service.
      3. Standard of value — money is a yardstick for measuring the
value of all goods and services.
      4. Store of wealth — money serves as a store of wealth by
retaining its purchasing power over time.
      5. Commodity money — money serves as both money and a
commodity.
      6. Face value of money — the dollar or cents value stamped
on a coin.
      7. Token money — coins which have a face value greater than
their intrinsic value.
      8. Intrinsic value — the value in the market of the metal in a
coin.
      9. Paper money — pieces of paper used as a medium of exchange
in the U. S. — Federal Reserve notes and Treasury currency.
      10. Fiat money — money that is decreed as such by the
government. It is of little value as a commodity, but it maintains its
value as a medium of exchange because people have faith that the
issuer will stand behind the pieces of printed paper and limit their
production.
      11. Near-money — assets that are almost as liquid as currency
and demand deposits.
      12. M1 — currency, travelers’ checks, demand deposits
(checking accounts) and other checkable deposits (including NOW
accounts).
      13. M2 — all of the components of M1 plus time deposits,
money market mutual fund shares, and money market accounts.
      14. M3 — a still more broadly defined money supply, a monetary
aggregate consisting of M2 + large time deposits or deposits of
$100,000 or more.
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