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22 Cards in this Set
- Front
- Back
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What is barter? |
The direct trading of goods or services for other goods or services. |
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What are the standards for a useful form of money? |
1. portability 2. divisibility 3. stability 4. durability 5. uniqueness |
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what is money supply? |
The amount of money the federal reserve makes available for people. |
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What is the impact of a falling or weak Dollar? |
1. overseas demand for U.S. products rise 2. U.S. exports rise and imports decline 3. U.S. tourism increases because foreign tourist can buy more with their currencies
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what are 5 major parts of the Federal Reserve System? |
1. the Board of Governors 2. The Federal Open Market Committee 3. 12 Federal Reserve Banks 4. 3 Advisory Councils 5. The member banks of the system |
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what are the 3 basic tools of Managing the Money Supply? |
1. Reserve Requirement - cash in the vault(in banks) 2. Open market Operations - the buying and selling of government bonds. to decrease the money supply the Fed sells bonds. to increase money the Fed buys bonds 3. Discount Rate - The interest rate the charges for loans to member banks. |
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what happened after the cash shortage problem in 1907? |
The Federal Reserve System was created |
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what is required under the Federal Reserve Act of 1913? |
All Federal charted banks had to join the Federal Reserve. |
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what is a Commercial Bank? |
A profit seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and uses those funds to make loans. They have to types of customers 1. Depositors 2. Borrowers |
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what is a Demand Deposit? |
The technical name for a checking account; money is available on demand from the depositor. |
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what is a time deposit? |
A savings account; a bank can require a prior notice before you make a withdrawal. |
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what is a Certificate of Deposit? |
A saving account that earns interest, to be delivered on the certificates maturity date. |
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what is the Savings and Loan Associations(S&L's)? |
A financial institution that accepts both savings and checking deposits and provides home mortgage loans. Often know as a thrift institution because their original purpose was to promote customer thrift and home ownership. |
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what is a credit union? |
nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members. they are exempt from federal income taxes. |
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what is a nonbank? |
Financial institution that accept no deposits, but offer many of the services provided by regular banks: 1. Life insurance companies 2. Pension Funds 3. Brokerage firms 4. Commercial finance companies 5. corporate financial services |
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what is the FDIC or The Federal Deposit Insurance Corporation? |
An independent agency of the U.S. government that insures bank deposits up to $250,00 |
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what is the Savings Association Insurance Fund(SAIF) |
Insures holders of accounts in saving and loan associations. |
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what is the National Credit Union Administration(NCUA)? |
provides up to $250,00 coverage per individual depositor per institution |
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what is the electronic funds transfer system? |
message about a transaction are sent from one computer to another so funds can be transferred quickly and more econamically. |
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what is a Letter of Credit? |
a promise by the bank to pay the seller a given amount if certain conditions are met. |
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what is Bankers Acceptance? |
a promise the bank will pay some specified amount at a particular time. |
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what is the International Monetary Fund(IMF)? |
fosters cooperative monetary policies that stabilize the exchange on one national currency for another. about 185 countries are a part of the IMF. |
