________ of wants: the unlikely occurrence that two people each have a good or service that the other wants.
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Barter
________: the exchange of one good or service for another to obtain the things they need.
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Fiat
________ money: money without intrinsic value that is used as money by government decree.
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Store of value
________: an item that people can use to transfer purchasing power from the present to the future.
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balance sheet
A(n) ________ is an accounting statement where the assets and liabilities are equivalent.
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Medium of exchange
________: an item that buyers give to sellers when they want to purchase goods and services.
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Reserves
________: deposits that banks have received but have not loaned out.
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Term Action Facility
________: the quantity of funds the Feds wanted to lend to banks, where banks bid on those funds.
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credit crunch
A(n) ________ is a shortage of capital that induces banks to reduce lending 29- 4 The Feds Tools of Monetary Control How the Fed Influences the Quantity of Reserves.
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Lender
________ of last resort: a(n) ________ to those who can not borrow anywhere else.
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Currency
________: the paper bills and coins in the hands of the public.
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fraction of deposits
When banks hold only a(n) ________ in reserve, the banking system creates money The Money Multiplier.
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Monetary policy
________: the setting of the money supply by policymakers in the central bank The Federal Open Market Committee.
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Unit of account
________: the yardstick people use to post prices and record debts.
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Liquidity
________: the ease with which an asset can be converted into the economys medium of exchange.
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100 percent reserve banking
A(n) ________ is an imaginary economy where all deposits are held as reserves.
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wealth
When allocating ________, the liquidity of each asset has to be balanced The Kinds of Money.
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Intrinsic value
________ means an item would have value even if it were not used as money.
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Leverage
________: the use of borrowed money to supplement existing funds for purposes of investment.
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Reserve ratio
________: the fraction of deposits that banks hold as reserves.
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reserve requirement
Banks can hold above the ________, called excess reserves.
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Discount rate
________: the interest rate on the loans that the Fed makes to banks.
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