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26 Cards in this Set
- Front
- Back
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Banker's acceptance
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a promise that the bank will pay some specified amount at a particular time
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Barter
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the trading of goods and services for other goods and services directly
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Certificate of Deposit (CD)
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a time-deposit (savings) account that earns interest to be delivered at the end of the certificate’s maturity date
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Commercial Bank
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a profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of those funds to make loans
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Credit Unions
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nonprofit, member owned financial cooperatives that offer the full variety of banking services to their members
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Debit Card
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an electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account
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Demand Deposit
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the technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor
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Discount Rate
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the interest rate that the Fed charges for loans to member banks
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Electronic Check Conversion (ECC)
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an electronic funds transfer tool that converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve’s Automated Clearing House
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Electronic Funds Transfer (EFT) System
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a computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks
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Federal Deposit Insurance Corporation (FDIC)
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an independent agency of the US government that insures bank deposits
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International Monetary Fund (IMF)
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organization that assists the smooth flow of money among nations
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Letter of Credit
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a promise by the bank to pay the seller a given amount if certain conditions are met
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M-1
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money that can be accessed quickly and easily (coins and paper money, checks, traveler’s checks, etc.)
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M-2
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money included in M-1 plus money that may take a littler more time to obtain (savings accounts, money market accounts, mutual funds, certificates of deposit, etc.)
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Money
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anything that people generally accept as payment for goods and services
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Money Supply
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the amount of money the Federal Reserve Bank makes available for people to buy goods and services
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Nonbanks
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financial organizations that accept no deposits but offer many of the services provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses)
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Open-Market Operations
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the buying and selling of US government bonds by the Fed with the goal of regulating money supply
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Pension Funds
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amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire
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Reserve Requirement
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a percentage of commercial banks’ checking and savings accounts that must be physically kept in the bank
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Savings and Loan Association (S&L)
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a financial institution that accepts both savings and checking deposits and provides home mortgage loans
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Savings Association Insurance Fund (SAIF)
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the part of the FDIC that insures holders of accounts in savings and loan associations
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Smart Card
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an electronic funds transfer tool that is a combination credit card, debit card, phone card, driver’s license card, and more
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Time Deposit
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the technical name for a savings account; the bank can require prior notices before the owner withdraws money from a time deposit
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World Bank
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the bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development
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