Campbell R. McConnell,
University of Nebraska, Lincoln
Stanley L. Brue,
Pacific Lutheran University
Thomas P. Barbiero,
Ryerson University
| Bank of Canada note | Paper money issued by the Bank of Canada.
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| Chartered bank | One of the multibranched, privately owned, commercial, financial intermediaries that have received charters by Act of Parliament and that alone, with Quebec Savings Banks, may call themselves "banks"; and which accept demand deposits.
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| Demand deposit | A deposit in a chartered bank against which cheques may be written; a chequable deposit.
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| Electronic transactions | Transactions that are made using an electronic medium.
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| Financial intermediary | A chartered bank or other financial institution (trust or mortgage loan company, credit union, caisse populaire) that uses the funds (savings) deposited with it to make loans (for consumption or investment).
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| Legal tender | Anything that government says must be accepted in payment of a debt.
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| M1 | The narrowly defined money supply; the currency (coins and paper money) and demand deposits in chartered banks not owned by the federal government or banks.
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| M2 | A more broadly defined money supply; equal to M1 plus nonchequable savings deposits (including money market deposit accounts), small time deposits (deposits of less than $100,000), and individual money market mutual fund balances.
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| M2+ | Very broadly defined money supply; includes, in addition to M2, deposits at trust and mortgage loan companies, and deposits and shares at caisses populaires and credit unions.
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| Medium of exchange | Items sellers generally accept and buyers generally use to pay for a good or service; money; a convenient means of exchanging goods and services without engaging in barter.
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| Near-money | Financial assets, the most important of which are saving, term, and notice deposits in chartered banks, trust companies, credit unions, and other savings institutions, that are not a medium of exchange but can be readily converted into money.
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| Prime interest rate | The interest rate banks charge their most creditworthy borrowers for example, large corporations with excellent financing credentials.
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| Store of value | An asset set aside for future use; one of the three functions of money.
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| Token money | Coins that have a face value greater than their intrinsic value.
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| Unit of account | A standard unit in which prices can be stated and the value of goods and services can be compared; one of the three functions of money.
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2002 McGraw-Hill Higher Education