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Civics Ch.24 voc
Question | Answer |
---|---|
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 loans 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 leads money to other banks;also, the people 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 i 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checking account | an account in which deposited money can be withdrawn at any time by writing a check |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 (CD) | timed deposit that states the amount of deposit, maturity, and rate of interest being paid |