Econ. -- Quiz 12 Study Guide

any form of money that has been declared a valid means of payment

What occurs when prices decrease because money seems more valuable and stable?

three principal purposes of money

any form of money backed by only a government's promise

What system allows banks to hold less than 100 percent of deposits in reserve?

Law that states, "Bad money drives out good

the direct exchange of one good for another good without a standard form of money passing from hand to hand

coins made from gold, silver, bronze, and other metals