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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checking account | an account in which deposited money can be withdrawn at any time by a written check |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 |