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Chapter 24
| Term | Definition |
|---|---|
| coins | metallic form of money such as pennies, nickles, and dimes. |
| currency | both coins and paper money. |
| commercial banks | a financial institution that offers full banking services to individuals and business. |
| savings and loans associations | financial institution that traditionally loaned money to people buying homes. |
| credit unions | nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services. |
| central bank | an institution that lends money to other banks |
| 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 that fed charges on its 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| checking accounts | an account in which deposited money can be withdrawn at anytime by writing a check |
| savings accounts | an account in which customers receive interest based on how much money they have deposit. |
| certificates of deposit | timed deposit that states the amount of the deposit, maturity, and rate of interest being paid |