click below
click below
Normal Size Small Size show me how
chap 24
| Term | Definition |
|---|---|
| coin | metallic form of money such as pennies nickles and dimes |
| currency | both coins and paper money |
| commercial bank | a financial institution that offers full banking services to individuals and businesses |
| saving and loan association | financial institution that traditionally loan money to people buying homes |
| credit union | nonprofit service cooperative that accepts deposits makes loans and provides other financial services |
| central bank | an institution that lends money to other banks also the place where government does its banking business |
| federal open market cmmitte | the most powerful committee of the fed because it makes the decisions that affect the economy as a whole manipulating the money supply |
| monetary policy | policy that invokes changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit |
| discount rate | the interest rate that the fed charges for its loans |
| reserve | a certain percentage of deposits that banks have set aside as cash in their own vaults or redeposit in the federal reeve distract bank |
| open market operations | purchase or sale of the us government bands treasury |
| checking account | an account in which deposited money can be withdrawn at any time by a written check |
| saving account | an account in which customers receive interest based on how much money they have deposited |
| certification of deposit | timed deposit that states the amount of the deposit maturity and rate of the interest being paid |