| Asset demand | the demand for money that is related to its use as a store of purchasing power
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| Barter | a system of trading one product for another
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| Cash reserves | funds kept on hand by deposit-takers to meet the needs of depositors withdrawing funds
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| Chartered banks | deposit-takers allowed by federal charter to offer a wide range of financial services
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| Coincidence of wants | the situation where someone purchasing an item finds a seller who wants what the purchaser is offering in return
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| Credit card | a means of payment that provides instantly borrowed funds
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| Currency | paper money and coins
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| Debit card | a means of payment that instantaneously transfers funds from buyer to seller
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| Demand deposits | accounts of funds to which depositors have immediate access
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| Deposit-takers | institutions or businesses that accept funds provided by savers and lend these funds to borrowers
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| Desired reserves | minimum cash reserves that deposit-takers hold to satisfy anticipated withdrawal demands
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| Excess reserves | cash reserves that are in excess of desired reserves
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| Foreign currency deposits | accounts of funds held by Canadian residents that are valued in foreign currency
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| Liquidity | the ease with which an asset can be converted into a means of payment
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| M1 | the narrowest definition of money, consisting of currency outside chartered banks and publicly held demand deposits at chartered banks
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| M2 | a broader definition of money, consisting of M1 plus notice deposits, and personal term deposits at chartered banks
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| M2+ | the definition of money consisting of M2 plus corresponding deposits at near banks and some other liquid assets
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| M3 | the definition of money consisting of M2 plus nonpersonal term deposits and foreign currency deposits at chartered banks
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| Money demand | the amounts of money demanded at all possible interest rates
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| Money demand curve | money demand expressed on a graph
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| Money demand schedule | money demand expressed in a table
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| Money multiplier | the value by which the amount of excess reserves is multiplied to give the maximum total change in money supply
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| Money supply | a set amount of money in the economy, as determined by government decision-makers
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| Money supply curve | money supply expressed on a graph
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| Money supply schedule | money supply expressed in a table
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| Near banks | deposit-takers that are not chartered and have more specialized services; mainly trust companies, mortgage loan companies, and credit unions
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| Near money | all deposits not included in M1, plus some other highly liquid assets
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| Notice deposits | accounts of funds for which deposit-takers may require notice before withdrawals can be made
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| Reserve ratio | desired reserves expressed as a percentage of deposits or as a decimal
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| Term deposits | accounts of funds to which depositors have no access for a fixed period of time
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| Transactions demand | the demand for money that is related to its use as a means of exchange
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| Unit of account | a pricing standard that allows all products to be valued consistently
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2002 McGraw-Hill Higher Education