(See related pages)
Below are the key terms featured in this chapter. The textbook's full glossary is also available for online searching.
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| asset demand | the demand for money that is related to its use as a store of purchasing power (See page(s) 318) |
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| barter | a system of trading one product for another (See page(s) 311) |
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| cash reserves | funds kept on hand by deposit-takers to meet the needs of depositors withdrawing funds (See page(s) 312) |
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| chartered banks | deposit-takers allowed by federal charter to offer a wide range of financial services (See page(s) 312) |
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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 (See page(s) 311) |
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| credit card | a means of payment that provides instantly borrowed funds (See page(s) 316) |
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| currency | paper money and coins (See page(s) 314) |
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| debit card | a means of payment that instantaneously transfers funds from buyer to seller (See page(s) 317) |
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| demand deposits | accounts of funds to which depositors have immediate access (See page(s) 314) |
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| deposit-takers | institutions or businesses that accept funds provided by savers and lend these funds to borrowers (See page(s) 312) |
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| desired reserves | minimum cash reserves that deposit-takers hold to satisfy anticipated withdrawal demands (See page(s) 322) |
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| excess reserves | cash reserves that are in excess of desired reserves (See page(s) 323) |
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| foreign currency deposits | accounts of funds held by Canadian residents that are valued in foreign currency (See page(s) 314) |
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| liquidity | the ease with which an asset can be converted into a means of payment (See page(s) 311) |
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| M1 | the narrowest definition of money, consisting of currency outside chartered banks and publicly held demand deposits at chartered banks (See page(s) 315) |
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| M2 | a broader definition of money, consisting of M1 plus notice deposits, and personal term deposits at chartered banks (See page(s) 315) |
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| M2+ | the definition of money consisting of M2 plus corresponding deposits at near banks and some other liquid assets (See page(s) 316) |
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| M3 | the definition of money consisting of M2 plus nonpersonal term deposits and foreign currency deposits at chartered banks (See page(s) 315) |
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| money demand | the amounts of money demanded at all possible interest rates (See page(s) 319) |
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| money demand curve | money demand expressed on a graph (See page(s) 319) |
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| money demand schedule | money demand expressed in a table (See page(s) 319) |
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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 (See page(s) 325) |
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| money supply | a set amount of money in the economy, as determined by government decision-makers (See page(s) 319) |
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| money supply curve | money supply expressed on a graph (See page(s) 319) |
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| money supply schedule | money supply expressed in a table (See page(s) 319) |
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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 (See page(s) 312) |
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| near money | all deposits not included in M1, plus some other highly liquid assets (See page(s) 316) |
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| notice deposits | accounts of funds for which deposit-takers may require notice before withdrawals can be made (See page(s) 314) |
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| reserve ratio | desired reserves expressed as a percentage of deposits or as a decimal (See page(s) 322) |
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| term deposits | accounts of funds to which depositors have no access for a fixed period of time (See page(s) 314) |
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| transactions demand | the demand for money that is related to its use as a means of exchange (See page(s) 318) |
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| unit of account | a pricing standard that allows all products to be valued consistently (See page(s) 311) |