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Banking & Fin - Fina
Banking & Finance - Final
| Question | Answer |
|---|---|
| When someone achieves financial gain by using another person's information to unlawfully assume the identity | Identity Theft |
| A customer with good credit ratings | Creditworthy |
| People who put money into banks | Depositors |
| The difference between interest paid and interest received | Spread |
| Anything of Value | Asset |
| Anything of value that can be readily exchanged | Liquid Asset |
| To banks, deposits represent this type of obligation | Liability |
| Total Assets - Total Liabilities | Equity |
| The loosening of government control | Deregulation |
| A financial institution that gets funds from the public and uses them to finance their business | Depository Institution |
| A private company that does not receive deposits but sell financial service | Nondepository Institution |
| All media of exchange circulating in a country | Currency |
| What year did the mint begin operation | 1794 |
| Established standards for the printing of money | National Banking Act 1864 |
| Created a system to stabilize the banking system | Federal Reserve Act 1913 |
| Buying a stock for a fraction of it's price and then reselling it for a profit | Margin |
| When many people try to withdraw their money at once | Bank Run |
| Guarantees deposits against bank failures up to $250,000 per depositor, per bank | Federal Deposit Insurance Corporation |
| A rise in general prices, money has less purchasing power | Inflation |
| A combination of a stagnant economy, high inflation and high unemployment | Stagflation |
| A decline in total production lasting a minimum of two consequtive quarters | Recession |
| Any bank that is part of the Federal Reserve System | Member Bank |
| The Fed buys and sells securities issued by the Treasury Department or other government agencies | Open Market Sales |
| Adjusting budget deficits or surpluses to achieve desired economic goals | Fiscal Policy |
| Legal approval to operate a business as a bank | Charter |
| A quarterly report that banks are required to complete | Call Report |
| An automated system that analyzes and compares historical supervisory ratings of banks with their call report data | System to Estimate Examinations Report |
| Federal Regulation of Foreign Banks | International Banking Act of 1978 |
| A record of all exchanges of goods and services that occur between two countries for a specified time period | Balance of Payments |
| Money that is based on some item of value | Commodity Money |
| Money that is deemed legal tender by the government | Fiat Money |
| Vault cash and the required percentage amounts on deposit in the Federal Reserve District Bank | Primary Reserves |
| Reserves held by a bank beyond it's reserve requirement | Excess Reserves |
| When money is loaned to customers, new deposits are created and the amount of money is expanded | Multiplier Effect |
| The amount of interest charged for short-term interbank loans - influced by the Fed's target rate | Federal Funds Rates |
| Interest rate the Federal Reserve sets and charges for loans to member banks | Discount Rate |
| The rate banks charge their best and most reliable cusomers | Prime Rate |
| An account that allows transactions to occur without restrictions on the frequency or the volume of transactions | Transaction Account |
| Are payable on demand whenever the depositor chooses | Demand Deposits |
| Deposits that are held or mature at a specified time | Time Deposits |
| Provide a monthly or quarterly computerized statement detailing all account activity including interest credited and fees charged | Statement Savings Account |
| Offers a higher rate of interest than savings accounts, but usually require a higher initial deposit | Money Market Deposit Account |
| Certificates issued by banks that gurantee the payment of a fixed interest rate until maturity date | Certificate of Deposit |
| The price paid for the use of money | Interest |
| Adding interest to the principal and paying interest on the new total | Compounding Interest |
| Nominal rate of which interest is calculated per year | Annual Percentage Rate |
| Represents the effect of compounding, varies according to the rate and frequency of compounding | Annual Percentage Yield |
| The name sometimes collectively given to deposit account documents | Governing Documents |
| Dated 6 months or more before it is presented for payment or deposit | Stale Check |
| Dated later than when it was written | Post-Dated Check |
| Negotiable | Transferable |
| Signature of the holder | Blank Endorsement |
| Limits the use of the instrument to a means specified by endorser | Restrictive Endorsement |
| Transfers the check to another party | Full Endorsement |
| An attempt to limit the liability of endorser limiting instruments further negotiability | Qualified Endorsement |
| When 2 banks count the same funds | Float |
| A check written on account that does not have adequate funds to cover it and is returned unpaid | Returned Check |
| A consumer purchases but must pay th eaccount in full at the end of the month | Charge Card |
| Allow consumers to pay all or part of their bills each month and finance the unpaid balance | Credit Card |
| Commonly used at ATMs, can be used to perform most banking functions with a PIN | Cash Cards |
| Transfers money from a person's designated account to the account of the retailer | Debit Card |
| Credit, Debit or other types of cards with embedded microchips that store the value and use the embedded logic to change the value | Smart Cards |
Created by:
mryan396
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