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Chapter 23
Definitions
Question | Answer |
---|---|
coin | metallic form of money |
currency | both coin and paper money |
commercial bank | a financial institution that offers full bacnking services |
Savings and Loans Association | financial institutions that traditionally loaned moneyto people buying homes |
credit union | Non profit service cooperative that accepts deposits, makes loans, and provides other financial services |
cerntral bank | an institution that lends money to other banks |
Federal Open Market committee | the most powerful committee of the fed, because it makes decisions that affect the economy |
discount rate | the interest rate the fed charges on its loans |
reserve | a certain percentage of deposite that banks have to set aside as cash in their own vaults or as deposite in there federal reserve. |
open market operations | purchase or sale of US government bonds and tresury bills |
checking account | an account in which deposited money can be withdrawn at anytime by writing a check |
saving account | an account in which costomers receive interest based on how much money they have deposited |
certificate of deposite | timed deposite that states the smount of the deposite |