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Argylls Ch. 12
Question | Answer |
---|---|
Standard of value and a means of exchange or payment. | Money |
modern society uses coins, currency, checks, and debit cards as part of | monetary system |
firm that manages money | financial institution |
record of amount of money a customer has deposited into or withdrawn from bank | bank account |
the money put into a bank account | deposit |
the money taken out of a bank account | withdrawal |
the rate the bank pays customers for keeping their money | interest |
allows money to be transferred to one bank account to another through network of computers | Electronic funds transfer (EFT) |
the electronic transfer of a payment directly from payer's bank account to party being paid | direct deposit |
property or goods pledged by a borrower to use as security against a loan if it is not repaid | Collateral |
agreement in which a borrower gives a lender the right to take the property if not paid | mortgage |
secure box in a banks vault used for the safe storage of a customers valuables | safe-deposit box |
offers the entire range of banking services | Commercial banks |
financial institutions that hold customers' funds in interest-bearing account and invest in mortgage loans | savings and loan associations |
not-for-profit banks set up by organization for employees use | credit unions |
provides loans specifically for buying homes or business | mortgage companies |
offer short term loans to business or consumer, but at higher rates | finance companies |
provides protection against loans to business and consumers | insurance companies |
sell stocks and bonds | brokerage firms |
the central bank of the united states | federal reserve system (federal reserve ) |
funds set aside for emergencies | reserves |
loan used to buy real estate such as house or office building | mortgage loan |
loan made to businesses to buy supplies and equipment | commercial loan |
loan made to an individual to pay for personal items | individual loan |
Credit arrangement in which a financial institution agrees to lend specific amount of money | line of credit |