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37 Cards in this Set

  • Front
  • Back
Anything widely accepted in exchange for items of value is considered to be _________
______ __ ______ is accepted as payment for products and resources
Medium of Exchange
_____ ___ _____ is the single standard for assinging and comparing values of products and resources
Measure of Value
______ __ _____ is the means of retaining and accumulating wealth
Store of value
Characteristics of Money
-Difficulty to counterfeit
The functions of money
-Medium of exchange
-Unit of accounting
-Store of value (purchasing power)
_______ is the study of money, how it is made, how it is lost and how it is managed.
______ is anything generally accepted in exchange for goods and services
______ was a slip of paper that could be exchanged for a spcified supply of the underlying commodity.
Before flat money the trade of services and goods was accomplished through _____.
_______ is trading one good or service for another of similar value.
________ _______ is where money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called demand deposit
Checking Account
_____ _____ _____ are accounts that offer higher interest rates than standard bank rates but with greater restriction
Money Market Accounts
______ ___ ______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accounts that guarantee a depositor a set interest rate over a specified interval as along as the funds are not withdrawn before the end of the period- six months to a year for example
Certificates of Deposit
___________ are means of access to preapproved lines of credit granted by a bank or finance company
Credit Cards
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
debit card
______ _____ _____ is an independent agency of the federal government established in 1913 to regulate the nation's banking and financial industry
Federal Reserve Board
_____ ______ is a means by which the feds controls the amount of money available in the economy
Monetary policy
______ _____ _____ is decisions to buy or sell US treasury bills (short term debt issued by the us government) and other investments
Open market operations
____ ______ is the percentage of deposits that banking institutions must hold in reserve
Reserve Requirement
______ _____is the rate of interest the Fed charges to loan money to any banking institution to meet reserve requirments
Discount Rate
_____ ____ is the the authority to establish and enforce credit rules for financial institutions and some private investors
Credit Controls
_____ _____ 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
Commercial Banks
______ __ _______ are financial institutions that primarily offer savings accounts and make long term loans for residential mortgages; also called "thrifts
Savings and Loan Association
_____ _____ is a financial institution owned and controlled by its depositor, who usually have a common employer, profession, trade group or religion
Credit union
financial institutions that are similar to savings and loan _______ ______ ______ is associations but like credit unions, are owned by their depositors
Mutual Savings bank
______ _____ _____ ______ insurance fund established in 1933 that ensures individual bank accounts
Federal Deposit Insurance Corporation
An agency that regulates and charters credit unions and _______ _____ ____ _______insures their deposits through its national credit union insurance fund (NCUA)
National Credit Union Association
_______ ______ are businesses that protect their clients against financial losses from certain specified risks (death, accident, theft)
Insurance companies
______ ______ are managed investment pools set aside by individuals, corporations, unions and some non profit organizations to provide retirement income for members
Pension Funds
______ ____ an investment company that pools individual investor dollars and invests them in large numbers of well-diversified securities
Mutual Funds
______ _____ are firms that buy, and sell stocks, bonds and other securities for their customers and provide other financial services
Brokerage firms
An ____ ______underwrites new issues of securities for corporations, states, and municipalities
Investment Banker
_____ _____ are businesses that offer short term loans at substantially higher rates of interest than banks
Finance Companies
An ______ ____ ____ is any movement of funds by means of an electronic terminal, telephone, computer, or magnetic tape
Electronic funds Transfer (EFT)
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
Automated teller Machine (ATM)
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)
Automated Clearinghouses (ACH's)