financial intitutions that accept from individuals and provide loans
commercial banks
financial institutions that accept deposites and use the funds to provide commercial and personal loans
savings institutions
financial intitutions that accept deposites and provide mortgage and personal loans to individuals
credit unions
nonprofit depository institutions that serve members who have a common affiliation
nondepository institutions
financial intitutions that do not offer federally insured deposit accounts but provide various other financial service
finance companies
nondepository institutions that specialize in providing personal loans to individuals
securities firms
nondepository institutions that facilitate the purchase or sale of securities by firms or individuals by providing investment banking services and brokerage services
insurance companies
nondepository institutions that provide insurance to protect individuals or firms from possible adverse events
investment companies
nondepository institutions that sell shares to individuals and use the proceeds to invest in securities to creat mutual funds
financial conglomerates
financial intitutions that offer a diverse set of financial services to individuals or firms
debit card
a card that is used to make purchases that are charged against a checking account
safety deposit box
a box at a financial intitution where a customer can store ducuments jewlery or other valuables
Automated teller machine (ATM)
a machine where individals can deposit and withdraw funds any time of the day
cashiers check
a check that is written on behalf of a person to a specific payee and will be charged against a financial intitutions account
money order
a check written on behalf of a person for a fixed amount that is paid in advance
travelers check
a check that is written on behalf of an individual and will be charged against a large well-known financial intitution or credit union
Certificate of deposit (CD)
an instrument that is used by a depository institution and specifies a minimum investment an interest rate and a maturity
risk-free rate
a return on an investment that is guaranteed for a specified period
risk primium
an additional return beyond the risk-free rate that can be earned from a deposit guaranteed by the government
term structure of intrest rates
the relatioship between the maturities of risk-free debt securities and the annulixed yields offered on those securities
money supply
demand deposites and currency held by the public
monetary policy
the actions taken by the Federal Reserve to control the money supply
open market options
the Fed's buying and selling of Treasury securities