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chapter 24
Term | Definition |
---|---|
coin | metallic form of money such as pennies,nickels, and dimes |
currency | both coins and paper money |
commercial bank | a financial institution that offers full banking services to individuals and businesses |
savings and loan association (S&L) | financial institutions that traditionally loaned money to people buying homes |
credit union | non profit service cooperative that accepts deposit, makes loans |
central bank | `an institution that lends money to other banks;also,the place where the government does its banking business |
federal open market committee (FOMC) | the most powerful committee of the fed,because it makes the decisions that affect the economy as a whole by manipulating the money supply |
monetary policy | policy that involves changing the rate of growth of the moeny supply in circulation in order to affect the cost and availability of credit |
discount rate | the interest rate of the fed charges on its loans |
reserve | a certain percentage or deposits that banks have to set aside as cash in their own vaults or as deposits in their federal reserve district bank |
open market operations | purchase or sale of U.S. government bonds and treasury bills |
checking account | an account in which deposited money can be with drawn at any time by writing a check |
savings account | an account in which customers receive interest based on how much money they have deposited |
certificate of deposit | timed deposit that states the amount of the deposit,maturity, and rate of interest being paid |