splash screen. chapter intro 2 section 1: what is money? the basis of the market economy is...
Post on 18-Dec-2015
221 views
TRANSCRIPT
![Page 1: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/1.jpg)
Splash Screen
![Page 2: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/2.jpg)
Chapter Intro 2
Section 1: What Is Money?
The basis of the market economy is voluntary exchange. In the American economy, the exchange usually involves money in return for a good or service. People are willing to accept money in exchange for goods, and financial institutions give people both a safe place to deposit their money or take out loans.
![Page 3: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/3.jpg)
Chapter Intro 2
Section 2: The Federal Reserve System
Political and economic institutions evolve to help individuals and groups accomplish their goals. The central bank of the United States is the Federal Reserve System. It controls the money supply, serves as the government’s bank, and watches over the banking industry.
![Page 4: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/4.jpg)
Chapter Intro 2
Section 3: How Banks Operate
Political and economic institutions evolve to help individuals and groups accomplish their goals. Banks offer important financial services to millions of people.
![Page 6: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/6.jpg)
Section 1-Main Idea
Guide to Reading
Big Idea
The basis of the market economy is voluntary exchange. In the American economy, the exchange usually involves money in return for a good or service.
![Page 8: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/8.jpg)
Section 1
Money (cont.)
• Money serves different functions and comes in different forms.
• Functions:
– Medium of exchange
– Store of value
– Measure of value
![Page 9: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/9.jpg)
Section 1
• Types:
– Historically—salt, hides, gems, tobacco
– Coins
– Currency
Money (cont.)
• Confidence in money gives value
Features of U.S. Currency
![Page 10: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/10.jpg)
Section 1
The Financial System
Financial institutions give people a safe place to deposit their money or take out loans.
![Page 11: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/11.jpg)
Section 1
The Financial System (cont.)
• Types of financial institutions:
– Commercial banks
– Savings and loan associations (S & L)
– Credit unions
– All perform similar functions
![Page 12: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/12.jpg)
Section 1
• Regulation and insurance make the U.S. financial system one of the safest.
The Financial System (cont.)
![Page 13: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/13.jpg)
Section 1
• Federal Deposit Insurance Corporation (FDIC)
– Formed because of Great Depression
– Protects individual accounts up to $100,000
The Financial System (cont.)
• Consumer confidence in banks fuels economic growth
![Page 15: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/15.jpg)
Section 2-Main Idea
Guide to Reading
Big Idea
Political and economic institutions evolve to help individuals and groups accomplish their goals.
![Page 16: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/16.jpg)
Section 2
Structure and Organization
The central bank of the United States is the Federal Reserve System.
![Page 17: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/17.jpg)
Section 2
Structure and Organization (cont.)
• The Federal Reserve System, or Fed, is the central bank of the U.S.
– Established in 1913
– Divided into 12 Federal Reserve Districts
The Federal Reserve System
![Page 18: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/18.jpg)
Section 2
• Thousands of member banks in the Fed
– Member banks are owners
– Buy stock and earn dividends in the Fed
Structure and Organization (cont.)
The Federal Reserve System
![Page 19: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/19.jpg)
Section 2
• Economic decisions made by Board of Governors
– President appoints, Senate ratifies seven members
– One member chairs for four years
– Free of political pressure
Structure and Organization (cont.)
The Federal Reserve System
![Page 20: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/20.jpg)
Section 2
• Different advisory councils report on:
– Condition of economy by district
– Financial institutions
– Consumer loans
Structure and Organization (cont.)
The Federal Reserve System
![Page 21: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/21.jpg)
Section 2
• Federal Open Market Committee (FOMC) manipulates money supply
Structure and Organization (cont.)
The Federal Reserve System
![Page 22: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/22.jpg)
Section 2
Functions of the Fed
The Fed controls the money supply, serves as the government’s bank, and watches over the banking industry.
![Page 23: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/23.jpg)
Section 2
Functions of the Fed (cont.)
• The Fed:
– Regulates banks
– Controls the money supply
– Holds the government’s money
![Page 24: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/24.jpg)
Section 2
• Two main regulatory functions:
– Banking regulation
– Consumer credit
Functions of the Fed (cont.)
![Page 25: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/25.jpg)
Section 2
• Government’s bank
– Holds government’s money
– Sells bonds and Treasury bills
– Issues currency
Functions of the Fed (cont.)
![Page 26: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/26.jpg)
Section 2
• Sets monetary policy by controlling money supply and interest
– Raises interest rate by contracting money supply
– Lowers interest rate by expanding money supply
Functions of the Fed (cont.)
Monetary Policy and Interest Rates
![Page 27: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/27.jpg)
Section 2
• Fed tools:
– Discount rate—lower rate stimulates economy
– Raise and lower reserve requirements for member banks
– Open market operations—buying bonds stimulates economy
Functions of the Fed (cont.)
Monetary Policy and Interest Rates
![Page 28: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/28.jpg)
Section 2
• The Fed is effective because it can move quickly and fine-tune as needed.
– Buying and selling bonds
– Changes in interest rates
Functions of the Fed (cont.)
Monetary Policy and Interest Rates
![Page 30: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/30.jpg)
Section 3-Main Idea
Guide to Reading
Big Idea
Political and economic institutions evolve to help individuals and groups accomplish their goals.
![Page 31: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/31.jpg)
Section 3
Banking Services
Banks offer important financial services for millions of people.
![Page 32: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/32.jpg)
Section 3
Banking Services (cont.)
• Investors start banks
– Need depositors for banks to grow
– Interest from loans generates profits
![Page 33: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/33.jpg)
Section 3
• Deposits
– Checking accounts—no interest or low interest
– Savings accounts—higher interest for higher deposits
– Certificates of deposit—set time period, higher interest
– Banks make loans using deposits
Banking Services (cont.)
![Page 34: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/34.jpg)
Section 3
Changes in Banking
Throughout American history, banking has become safer and more efficient.
![Page 35: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/35.jpg)
Section 3
Changes in Banking (cont.)
• U.S. banking has become safer and more efficient with time.
• The National Bank chartered in 1791
– Supplied federal government
– Many opposed it
– Went out of business when charter lapsed
![Page 36: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/36.jpg)
Section 3
• Privately owned state banks issued currency until 1863.
– National Banking Act
– National currency
– Federally chartered private banks
Changes in Banking (cont.)
![Page 37: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/37.jpg)
Section 3
• Panic of 1907
– Federal Reserve Act of 1913 passed
Changes in Banking (cont.)
![Page 38: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/38.jpg)
Section 3
• Great Depression
– 1930s
– F. D. Roosevelt closed all banks
– Only financially sound could reopen
– Federal Deposit Insurance Corporation (FDIC) established
Changes in Banking (cont.)
![Page 39: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/39.jpg)
Section 3
• The Savings and Loan Crisis
– Late 1980s and early 1990s
– High-risk loans
– Hundreds of S&Ls failed
– FDIC took over regulations of S&Ls
Changes in Banking (cont.)
![Page 40: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/40.jpg)
Section 3
• The Gramm-Leach-Bliley Act
– Passed in 1999
– Banking institutions can offer more services
Changes in Banking (cont.)
![Page 41: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/41.jpg)
A. A
B. B
Section 3
0%0%
Do you agree that there could be a financial disaster like the Panic of 1907 today?
A. Agree
B. Disagree
![Page 47: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/47.jpg)
Figure 1
![Page 48: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/48.jpg)
Figure 2A
![Page 49: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/49.jpg)
Figure 2B
![Page 50: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/50.jpg)
Figure 3
![Page 51: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/51.jpg)
TIME Trans
![Page 52: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/52.jpg)
DFS Trans 1
![Page 53: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/53.jpg)
DFS Trans 2
![Page 54: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/54.jpg)
DFS Trans 3
![Page 55: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/55.jpg)
Vocab1
coin
metallic form of money such as pennies, nickels, and dimes
![Page 56: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/56.jpg)
Vocab2
currency
both coins and paper money
![Page 57: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/57.jpg)
Vocab3
commercial bank
a financial institution that offers full banking services to individuals and businesses
![Page 58: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/58.jpg)
Vocab4
savings and loan association (S&L)
financial institutions that traditionally loaned money to people buying homes
![Page 59: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/59.jpg)
Vocab5
credit union
nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
![Page 60: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/60.jpg)
Vocab6
obvious
easily found, seen, or understood
![Page 61: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/61.jpg)
Vocab7
medium
a means of doing
![Page 62: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/62.jpg)
Vocab8
central bank
an institution that lends money to other banks; also, the place where the government does its banking business
![Page 63: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/63.jpg)
Vocab9
Federal Open Market Committee (FOMC)
the most powerful committee of the Fed, because it makes the decisions that affect the economy as a whole by manipulating the money supply
![Page 64: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/64.jpg)
Vocab10
monetary policy
policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit
![Page 65: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/65.jpg)
Vocab11
discount rate
interest rate the Fed charges on its loans
![Page 66: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/66.jpg)
Vocab12
reserve
a certain percentage of deposits that banks have to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank
![Page 67: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/67.jpg)
Vocab13
open market operations
purchase or sale of U.S. government bonds and Treasury bills
![Page 68: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/68.jpg)
Vocab14
manipulate
to handle with skill
![Page 69: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/69.jpg)
Vocab15
contract
to become smaller
![Page 70: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/70.jpg)
Vocab16
checking account
an account in which deposited money can be withdrawn at any time by writing a check
![Page 71: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/71.jpg)
Vocab17
savings account
an account in which customers receive interest based on how much money they have deposited
![Page 72: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/72.jpg)
Vocab18
certificate of deposit (CD)
timed deposit that states the amount of the deposit, maturity, and rate of interest being paid
![Page 73: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/73.jpg)
Vocab19
initial
the very first
![Page 74: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/74.jpg)
Vocab20
principal
the most important
![Page 75: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/75.jpg)
Vocab21
behalf
in the interest of
![Page 76: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/76.jpg)
Help
Click the Forward button to go to the next slide.
Click the Previous button to return to the previous slide.
Click the Home button to return to the Chapter Menu.
Click the Transparency button from the Chapter Menu or Chapter Introduction slides to access the TIME Transparency that is relevant to this chapter. From within a section, click on this button to access the relevant Daily Focus Skills Transparency.
Click the Return button in a feature to return to the main presentation.
Click the Economics Online button to access online textbook features.
Click the Reference Atlas button to access the Interactive Reference Atlas.
Click the Exit button or press the Escape key [Esc] to end the chapter slide show.
Click the Help button to access this screen.
Links to Presentation Plus! features such as Graphs in Motion, Charts in Motion, and figures from your textbook are located at the bottom of relevant screens.
To use this Presentation Plus! product:
![Page 77: Splash Screen. Chapter Intro 2 Section 1: What Is Money? The basis of the market economy is voluntary exchange. In the American economy, the exchange](https://reader035.vdocuments.mx/reader035/viewer/2022062320/56649d235503460f949f96db/html5/thumbnails/77.jpg)
End of Custom Shows
This slide is intentionally blank.