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Chapter 10 Question 1

Across
Any money declared by a government to be legal tender. State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard. Intrinsically valueless money used as money because of government decree
a metric for the money supply of a country and includes physical money — both paper and coin — as well as checking accounts, demand deposits and negotiable order of withdrawal (NOW) accounts
the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price
The Federal Deposit Insurance Corporation (the U.S. corporation insuring deposits in the United States against bank failure)
interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan
an account with a bank or other financial institution that allows the depositor to withdraw his or her funds from the account without warning or with less than seven days' notice (a key component of the M1 money supply calculated by the Federal Reserve)
typically the result of panic rather than true insolvency on the part of the bank. However, the bank does risk default as more individuals withdraw funds; what began as panic can turn into a true default situation
the charge for the privilege of borrowing money, typically expressed as annual percentage rate
Down
a measure of the money supply that includes all elements of M1 as well as "near money."
a term that has several financial meanings. The most commonly used refer to the original sum of money borrowed in a loan, or put into an investment
cooperative associations that make small loans to its members at low interest rates and offer other banking services (such as savings and checking accounts)
the failure to pay interest or principal on a loan or security when due, it occurs when a debtor is unable to meet the legal obligation of debt repayment, and it also refers to cases in which one party fails to perform on a futures contract as required by an exchange
a quick method of calculating the interest charge on a loan (determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments)
paper currency (printed in green on the back) issued by the United States during the American Civil War. They were in two forms: Demand Notes, issued in 1861–1862, and United States Notes issued in 1862–1865
a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full