Finance Chapter 1 Vocab

Adam Smith

23. Is the father of modern economics , described bartering as "higgling, haggling, swapping, and dickering

barter

25. System is an old method of exchange. It dates back to 6000 B.C.

bartering

24. Is trading goods or services with another person without using money in the transaction. It is trading an item that a person currently has for another item that he needs or wants.

goods

28. Are things that you can touch such as clothing, food, tools, and furniture

goods and services

27. Are the most basic products of the economics system that consist of tangible and intangible consumable items and satisfy the needs and wants of a consumer.

services

26. Are the things that someone does for you but you cannot touch it such as a haircut, electricity, Internet, etc.

potlach

16. is a Chinook Indian custom and accepted as money in history.

salt

17. Was exceptionally important for thousands of years because it preserved food. It was considered a form of currency because it was difficult to obtain and a highly valued trade item.

U.S. Bureau of Engraving and Printing

15. Designs, engraves, and prints the official paper money (Federal Reserve Notes) of the United States.

U.S. Department of the Treasury

20. Is responsible for overseeing the production of coins and currency notes for the United States.

The Federal Reserve

18. Manages the nation's monetary policy and oversees the nation's banking system. The Fed consists of 12 regional banks and controls the amount of money in circulation at any given time

The United States Mint

21. It is the federal agency responsible for the production and distribution of coins. Coins are minted in denominations of a penny, nickel, dime, quarter, half-dollar, and dollar. Coins are minted in Denver and Philadelphia

The U.S. Secret Service

19. protects and guards the President of the United States. Also its responsibility includes financial crimes, prevention and investigation of counterfeiting, and major fraud.

Wampum

22. A string of beads made from clam shells served as money in history.

Bitcoin

14. Digital asset, commonly referred to as digital currency, digital cash, virtual currency, electronic currency acts like real cash except it is not on paper. Transactions take place electronically over the Internet.

cattle

12. Were the oldest form of money - cows, camels, sheep, and other livestock.

continentals

11. Paper money issued during the American Revolution

counterfeiting

9,13. Is the process of fraudulently manufacturing, altering, or distributing a product (currency, coins, goods). It is a criminal offense when it involves the intent to defraud in passing off the item to others.

cowrie shells

8. Most widely and longest used currency in history.

greenbacks

10. Money/currency issued during the Civil War.

Great Seal of the United States

7. Used to authenticate certain documents issued by the federal government such as U.S. passports. It was first used in 1782.

Seal of the Federal Reserve System

5. Beginning with the 1996 series represents the entire Federal Reserve System. A letter and number below the serial number (upper left) identifies the issuing Federal Reserve Bank.

Silver Certificate

4. They are still legal tender in the U.S. The value is in its collectability.

United States Notes

6. A classification of U. S. paper currency that is in use. Both Federal Reserve Notes and United States Notes have been legal tender since the gold recall of 1933.

Charles Thomson

3. Secretary of the Continental Congress, credited with finalizing the design of the Great Seal of the United States. Congress accepted the final design on June 13, 1782.

Federal Reserve Notes

1. These notes are the legal tender of the United States of America.

Federal Reserve System

2. Was created and passed in 1913 by Congress. It is the central banking system of the United States.