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CH 24
Question | Answer |
---|---|
coin | metallic forms of money |
currency | medium of exchange in paper or coins |
commercial bank | financial institutions that provide full banking services |
savings and loan association | financial institutions that loan money to people |
credit union | non-profit organizations that only work with members of the group that sponsors them |
central bank | national bank that all other banks borrow from |
Federal Open Market Committee (FOMC) | policy-making group that makes decisions by controlling the money supply |
monetary policy | controlling of the money supply and cost of borrowing |
discount rate | the rate the fed charges member banks for loans |
reserve | required deposit for banks to put in the fed |
open market operations | the purchase and sale of U.S. Government bonds and Treasury bills |
checking account | accounts that allow customers to write checks or to use check and debit cards |
savings account | accounts where customers receive interest from the bank on the money they have deposited there |
certificate of deposit (CD) | funds that pay interest but require the saver to deposit the funds for a specific amount of time |