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Ch.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 individuals and businesses |
Saving and Loan Associations | Financial institutions that traditionally loaned money to people buying homes. |
Credit Union | Nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services. |
Federal Deposit Insurance Corporation | Federal agency that insures individual accounts in financial institutions for up to $100,000. |
Monetary Policy | Policy that involves changing the rate of growth the money supply in circulation in order to affect the cost and availability of credit. |
Central Bank | An institution that lends money to other banks; also, the place where the government does its 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. |
Discount Rate | The interest rate the 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Checking Account | An account in which deposited money can be withdrawn at any time by writing a check.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 of the deposit, maturity, and rate of interest being paid. |