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Chap 24 Terms
WSHS - C/E - Chapter 24 Terms - Boyd/Tedder
| Question | Answer |
|---|---|
| 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 |
| savings and loan association | 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 |
| obvious | easily found, seen, or understood |
| medium | a means of doing |
| central bank | an institution that lends money to other banks; also the place where the government does its banking business |
| Federal Open Market Committee (FOMC) | 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 of credit |
| 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 US government bonds and Treasury bills |
| manipulate | to handle with skill |
| contract | to become smaller |
| checking account | an account in which deposited money can be withdrawn at any time by writing a check |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 (CD) | timed deposit that states the amount of the deposit, maturity, and rate of interest being paid |
| initial | the very first |
| principal | the most important |
| behalf | in the interest of |