Term | Definition |
central bank | an institution that lends money to other banks;also, the place where the government does its banking business |
certificates of deposit | timed deposit that states the amount of the deposit,maturity,and rate of interest being paid. |
checking accounts | an account in which deposited money can be withdrawn at any time by writing a check |
coins | metallic form of money such as pennies,nickels,and dimes |
commercial banks | a financial institution that offers full banking services to individuals and businesses. |
credit unions | nonprofit service cooperative that accepts deposits,makes loans,and provides other financial services. |
currency | both coins and paper money |
discount rate | the interest rate the fed charges on its loans |
federal open market committee | the most powerful committee of the fed,because it makes the decision that affect the economy as a while 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 |
open market operations | purchase or sale of U.S government bonds and Treasury bills |
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. |
savings account | an account in which customers receive interest based on how much money they have deposited |
savings and loan associations | financial institutions that traditionally loaned money to people buying homes |