click below
click below
Normal Size Small Size show me how
Ch.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 |
Savings and loan association (S&L) | 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 |
Central Bank | An institution that lends money to other banks; also, the place that 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 of credit |
Discount Rate | The interest rate the Fed charges on its loans |
Reserve | A certain percentage of deposits that banks have 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Checking Account | An account in which deposited money can be withdrawn at any time by writing a check |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 Accounts | 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 |