Flashcard: Fundamentals of Money and Banking — 11 carte

Money — functions?

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

Money — functions?

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

Types of Money — examples?

Commodity, representative, fiat, greenbacks.

Types of money?

Commodity, representative, fiat, greenbacks.

Bond — key feature?

Pays interest and matures at par.

Gold standard — effect?

Limited money supply, backed by gold.

Bonds — features?

Debt, periodic interest, matures at par.

Central banks — roles?

Regulate money, supervise banks, lender of last resort.

Market trends — types?

Bull (rising), bear (falling).

Mortgage loans — secured by?

Real estate; foreclosure enforces repayment.

Diversification — purpose?

Reduces investment risk.