Business Chapter 15

Front 1

Anything widely accepted in exchange for items of value is considered to be _________

Back 1

Money

Front 2

______ __ ______ is accepted as payment for products and resources

Back 2

Medium of Exchange

Front 3

_____ ___ _____ is the single standard for assinging and comparing values of products and resources

Back 3

Measure of Value

Front 4

______ __ _____ is the means of retaining and accumulating wealth

Back 4

Store of value

Front 5

Characteristics of Money

Back 5

-Acceptability
-Diversubility
-Portability
-Durability
-Difficulty to counterfeit

Front 6

The functions of money

Back 6

-Medium of exchange
-Unit of accounting
-Store of value (purchasing power)

Front 7

_______ is the study of money, how it is made, how it is lost and how it is managed.

Back 7

Finance

Front 8

______ is anything generally accepted in exchange for goods and services

Back 8

Money

Front 9

______ was a slip of paper that could be exchanged for a spcified supply of the underlying commodity.

Back 9

IOU

Front 10

Before flat money the trade of services and goods was accomplished through _____.

Back 10

bartering

Front 11

_______ is trading one good or service for another of similar value.

Back 11

bartering

Front 12

________ _______ is where money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called demand deposit

Back 12

Checking Account

Front 13

_____ _____ _____ are accounts that offer higher interest rates than standard bank rates but with greater restriction

Back 13

Money Market Accounts

Front 14

______ ___ ______savings accounts that guarantee a depositor a set interest rate over a specified interval as along as the funds are not withdrawn before the end of the period- six months to a year for example

Back 14

Certificates of Deposit

Front 15

___________ are means of access to preapproved lines of credit granted by a bank or finance company

Back 15

Credit Cards

Front 16

A _____ _____ is a card that looks like a credit card but works like a check, using it results in a direct, immediate electronic payment fro the card holder's checking account to a merchant or third party

Back 16

debit card

Front 17

______ _____ _____ is an independent agency of the federal government established in 1913 to regulate the nation's banking and financial industry

Back 17

Federal Reserve Board

Front 18

_____ ______ is a means by which the feds controls the amount of money available in the economy

Back 18

Monetary policy

Front 19

______ _____ _____ is decisions to buy or sell US treasury bills (short term debt issued by the us government) and other investments

Back 19

Open market operations

Front 20

____ ______ is the percentage of deposits that banking institutions must hold in reserve

Back 20

Reserve Requirement

Front 21

______ _____is the rate of interest the Fed charges to loan money to any banking institution to meet reserve requirments

Back 21

Discount Rate

Front 22

_____ ____ is the the authority to establish and enforce credit rules for financial institutions and some private investors

Back 22

Credit Controls

Front 23

_____ _____ are the largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals

Back 23

Commercial Banks

Front 24

______ __ _______ are financial institutions that primarily offer savings accounts and make long term loans for residential mortgages; also called "thrifts

Back 24

Savings and Loan Association

Front 25

_____ _____ is a financial institution owned and controlled by its depositor, who usually have a common employer, profession, trade group or religion

Back 25

Credit union

Front 26

financial institutions that are similar to savings and loan _______ ______ ______ is associations but like credit unions, are owned by their depositors

Back 26

Mutual Savings bank

Front 27

______ _____ _____ ______ FDIC...an insurance fund established in 1933 that ensures individual bank accounts

Back 27

Federal Deposit Insurance Corporation

Front 28

An agency that regulates and charters credit unions and _______ _____ ____ _______insures their deposits through its national credit union insurance fund (NCUA)

Back 28

National Credit Union Association

Front 29

_______ ______ are businesses that protect their clients against financial losses from certain specified risks (death, accident, theft)

Back 29

Insurance companies

Front 30

______ ______ are managed investment pools set aside by individuals, corporations, unions and some non profit organizations to provide retirement income for members

Back 30

Pension Funds

Front 31

______ ____ an investment company that pools individual investor dollars and invests them in large numbers of well-diversified securities

Back 31

Mutual Funds

Front 32

______ _____ are firms that buy, and sell stocks, bonds and other securities for their customers and provide other financial services

Back 32

Brokerage firms

Front 33

An ____ ______underwrites new issues of securities for corporations, states, and municipalities

Back 33

Investment Banker

Front 34

_____ _____ are businesses that offer short term loans at substantially higher rates of interest than banks

Back 34

Finance Companies

Front 35

An ______ ____ ____ is any movement of funds by means of an electronic terminal, telephone, computer, or magnetic tape

Back 35

Electronic funds Transfer (EFT)

Front 36

An _____ _____ ____ (___)the most familiar form of electronic banking, which dispenses cash, accepts deposits, and allows balance inquiries and cash transfers from one account to another

Back 36

Automated teller Machine (ATM)

Front 37

An _______ ______ (___) a system that permits payments such as deposits or withdrawls to be made to and from a bank account by magnetic computer tape (direct deposit)

Back 37

Automated Clearinghouses (ACH's)