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Budget & Finance
Banking and Money Management
| Term | Definition |
|---|---|
| Commercial Bank | provide services such as checking and savings accounts, credit cards, and loans. |
| Central Bank | government banks that manage and regulate the money supply and other banks. |
| Depositors | individuals and businesses who place funds in a bank. |
| FDIC | Federal Deposit Insurance Corporation - A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. |
| Intermediaries | go between - middle man |
| Depository Institution | Institution that obtain funds from the public and use them to finance the loans and investments that provide the majority of their income. |
| Non-Depository Institution | Institutions that do not receive deposits but provide other financial services for a fee. |
| Credit Union | a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates. |
| Investment Bank | a bank the purchases large holdings of newly issued shares and resells them to investors. |
| Commercial Bank | a bank that offers services to the general public and to companies. |
| Investment | the action or process of investing money for profit or material result. |
| Loan | a sum of money that is expected to be paid back with interest. |
| Federal Reserve | the "Central Bank" of the United States provides the nation with a safe, flexible, and stable monetary and financial system. |