chapter+10

Chapter 10.1 Questions 1-5, 9
 * money- anything that serves as a medium of exchange a unit off account and a store of value
 * medium of exchange- anything that is used to determine value during the exchange of goods and services
 * barter- the direct exchange of one set of goods or services for another.
 * unit of account- a means for comparing the values of goods and services
 * store of value- something that keeps its value if its stored rather than used.
 * currency- coins and paper bills used as money
 * commodity money- objects that have value in themselves and that are also used as money
 * representative money- objects that have value because the holder can exchange them for something else of value.
 * 1) If money is kept in a bank then it makes money through interest over time.
 * 2) A) commodity money could be gold. B) representative money is something like a silver certificate that can be exchanged for silver. C)fiat money is just normal cash
 * 3) United State currency has value because there is the same amount of gold behind every penny.
 * 4) Commodity money can be ruined and the value could be lost.
 * 5) continentals became worthless because the people thought they wouldn't be able to redeem them for their gold and silver.
 * 6) if i was creating a new coin i would use something that would not loose its value overtime nor gain any.
 * 1) if i was creating a new coin i would use something that would not loose its value overtime nor gain any.
 * 1) if i was creating a new coin i would use something that would not loose its value overtime nor gain any.
 * 1) if i was creating a new coin i would use something that would not loose its value overtime nor gain any.

Chapter 10.2 outline
 * bank-an institution for receiving, keeping, and lending money
 * national bank- a bank chartered, or licensed, by the national government
 * bank run- widespread panic in which great numbers of people try to redeem their paper money
 * greenback- paper currency issued during the civil war
 * gold standard- a monetary system in which paper money and coins are equal to the value of a certain amount of gold
 * federal reserve system- the nations central banking system
 * central bank- bank that can lend to other banks in times in needs
 * member bank- bank that belongs to the federal reserve system
 * federal reseve note- the national currency we use today in the united states
 * great depression- the server economic decline that began in 1929 and lasted for more than a decade
 * federal deposit insurance corporation- the government agency that insures customer deposits if a bank fails