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15 Cards in this Set
- Front
- Back
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Coin
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metallic form of money such as pennies, nickels, and dimes
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Currency
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both coins and paper money
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Commercial Bank
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a financial institution that offers full banking services to individuals and businesses
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Savings and Loan Association (S&L)
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financial institutions that traditionally loaned money to people buying homes
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Credit Union
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nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
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Federal Deposit Insurance Corporation
(FDIC) |
federal agency that insures individual accounts in financial institutions for up to $100,000
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Central Bank
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an institution that lends money to other banks; also the place where the government does its banking business
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Federal Open Market Comittee (FOMC)
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the most powerful comittee of the Fed, because it makes the decisions that affect the economy as a whole by manipulating the money supply
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Monetary Policy
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policy that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit
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Discount Rate
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the interest rate the Fed charges on its loans
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Reserve
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a certain percentage of deposits that banks have to set aside as cash in their own vaults or as deposits in their Federal Reserve district bank
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Open Market Operations
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purchase or sale of U.S. government bonds and Treasury bills
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Checking Account
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an account in which deposited money can be withdrawn at any time by writing a check
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Savings Account
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an account in which customers receive interest based on how much money they have deposited
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Certificate of Deposit (CD)
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timed deposit that states the amount of the deposit, maturity, and rate of interest being paid
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