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chapter 24 vocabular
Civics
| Question | Answer |
|---|---|
| metallic form of money such as pennies, nickels, and dimes | Coin |
| both coins and paper money | Currency |
| a financial institution that offers full banking services to individuals and businesses | Commercial Bank |
| financial institutions that traditionally loaned money to people buying homes | Savings and Loan Association (S&L) |
| nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services | Credit Union |
| an institution that lends money to other banks; also, the place where the government does its banking business | Central Bank |
| the most powerful committee of the Fed, because it makes the decisions that affect the economy as a whole by manipulating the money supply | Federal Open Market Committee (FOMC) |
| policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit | Monetary Policy |
| the interest rate the Fed charges on its loans | Discount Rate |
| a certain percentage of deposits that banks have to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank | Reserve |
| purchase or sale of U.S. government bonds and Treasury bills | Open Market Operations |
| an account in which deposited money can be withdrawn at any time by writing a check | Checking Account |
| an account in which customers receive interest based on how much money they have deposited | Savings Account |
| timed deposit that states the amount of the deposit, maturity,and rate of interest being paid | Certificate of Deposit (CD) |