-
what is the money supply?
the amount of money the federal reserve bank makes abvailable for people to buy goods and services.
-
what is M-1?
money that can be accessed quickly and easily
-
what is m-2?
money included in m-1 plus money thatt may take a little more time to obtain(savings account, mutual funds)
-
what is the reserve requirement?
a percentage of commercial banks checking and savings accounts that must be physically kept in the bank.
-
what are the open-market operations?
the buying and selling of u.s. govenment bonds by the fed with the goal of regulating the money supply.
-
what is the discount rate?
the interest rate that the fed charges for loans to member banks
-
what are nonbanks?
financial organizations that accept no deposits but offer many of the services provided by the regular banks
-
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 then uses some of these funds to make loans
-
what is demand deposit?
the technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from depositor.
-
what is time deposit?
savings account/ the bank can require prior notice before the owner withdraws money from a time deposit.
-
what is a certificate of deposit(cd)?
a time deposit(savings)account that earns interest to be delivered at the end of the certificates maturity date.
-
what is the savings and loan association?
a financial institution that accepts both savings and cheking deposits and provides home mortgage loans.
-
what are credit unions?
nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.
-
what are pension funds?
amounts of money put aside by corporations nonprofit organizations or unions to cover part of the financial needs of members when they retire.
-
what is the federal deposit insurance corporation(fdic)?
an independent agency of the u.s. government that insures bank depostis.
-
what is the savings association insurance fund(saif)?
the part of the fdic that insures holders of accounts in savings and loan associations
-
what is the electronic funds transfer (EFT) system?
a computarized system that electrinically performs financial transactions such as making purchases, paying bills, and receiving paychecks.
-
what is the electronic check conversion(ECC)?
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 reserves automated clearing house
-
what is a debit card?
an electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account
-
what is a smart card?
an electronic funds transfer tool that is a combination credit card, debit card, phone card, drivers license card, and more
-
what is a letter of credit?
a promis by the bank to pay the seller a given amount if certain conditions are met.
-
what is bankers acceptance?
a promise that the bank will pay some specified amount at a particular time
-
what is the world bank?
the bank primarely responsible for financing economic development; also known as the international bank for reconstruction and development
-
what is the international monetary fund(IMF)?
organization that assists the smooth flow of money among nations.
|
|
