Chapter 20 Vocabulary

  1. money
    • Anything that people generally
    • accept as payment for goods
    • and services.
  2. barter
    • The direct trading of goods or
    • services for other goods or
    • services.
  3. money supply
    • The amount of money the
    • Federal Reserve Bank makes
    • available for people to buy
    • goods and services.
  4. M-1
    • Money that can be accessed
    • quickly and easily (coins and
    • paper money, checks, travelers
    • checks, etc.).
  5. M-2
    • Money included in M-1 plus
    • money that may take a little
    • more time to obtain (savings
    • accounts, money market
    • accounts, mutual funds,
    • certificates of deposit, etc.).
  6. M-3
    • M-2 plus big deposits like
    • institutional money market
    • funds.
  7. reserve requirement
    • A percentage of commercial
    • banks' checking and savings
    • accounts that must be
    • physically kept in the bank.
  8. open-market operations
    • The buying and selling of U.S.
    • government bonds by the Fed
    • with the goal of regulating the
    • money supply.
  9. discount rate
    • The interest rate that the Fed
    • charges for loans to member
    • banks.
  10. 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.
  11. demand deposit
    • The technical name for a
    • checking account the money
    • in a demand deposit can be
    • withdrawn anytime on demand
    • from the depositor.
  12. time deposit
    • The technical name for a
    • savings account the bank can
    • require prior notice before the
    • owner withdraws money from a
    • time deposit
  13. certificate of deposit (CD)
    • A time-deposit (savings)
    • account that earns interest to
    • be delivered at the end of the
    • certificate's maturity date.
  14. savings and loan
    association (S&L)
    • A financial institution that
    • accepts both savings and
    • checking deposits and
    • provides home mortgage
    • loans.
  15. credit unions
    • Nonprofit, member-owned
    • financial cooperatives that offer
    • the full variety of banking
    • services to their members.
  16. nonbanks
    • Financial organizations that
    • accept no deposits but offer
    • many of the services provided
    • by regular banks (pension
    • funds, insurance companies,
    • commercial finance companies,
    • consumer finance companies,
    • and brokerage houses).
  17. 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.
Author
davecowman
ID
336452
Card Set
Chapter 20 Vocabulary
Description
Chapter 20
Updated