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Chapter 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 Loans Association (S&L) | Financial Institutions that traditionally loaned money to people buying homes. |
Credit Union | Nonprofit services cooperative that accepts deposits, make loans, and provide other financial services. |
Central Bank | An institution that lends money to other banks; also the place where the government does its 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 to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank. |
Open Market Operations | Purchase of 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Checking Account | An account in which deposited money can be withdrawn at any time by writing a check.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) | Times deposit that states the amount of the deposit, maturity, and rate of interest being paid. |