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Chapter 24
| Term | Definition |
|---|---|
| Coin | Metallic form of money such as pennies nickels, and dimes. |
| Currency | Both coins and paper money |
| Commercial Bank | A financial institution that offers full banking services to individual and business. |
| Savings & Loan Association | Financial institutions that traditional loaned money to people buying homes. |
| Credit Union | Nonprofit service cooperation that accepts deposits, makes loans, and provides other financial services. |
| Central Bank | An institution that lends money to other banks; also, the place where the government does it's banking business. |
| Federal Open Market Committee | The most powerful committee of the Fed, because it makes the decisions that affect the economy as a whole by manipulating the money supply. |
| Monetary Policy | Policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability. |
| Discount Rate | The interest rate the Fed charges on it's loans. |
| Reserve | 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. |
| Open Market Operations | Purchase or sale of U.S. government bonds and Treasury bills. |
| Checking Account | An account in which deposited money can be withdrawn at any time by writing a check. |
| Savings Account | An account in which customers receive interest based on how much money they have deposited. |
| Certificate of Deposit | Timed deposit that states the amount, maturity, and rate of interest being paid. |