-
money
- Anything that people generally
- accept as payment for goods
- and services.
-
barter
- The direct trading of goods or
- services for other goods or
- services.
-
money supply
- The amount of money the
- Federal Reserve Bank makes
- available for people to buy
- goods and services.
-
M-1
- Money that can be accessed
- quickly and easily (coins and
- paper money, checks, travelers
- checks, etc.).
-
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.).
-
M-3
- M-2 plus big deposits like
- institutional money market
- funds.
-
reserve requirement
- A percentage of commercial
- banks' checking and savings
- accounts that must be
- physically kept in the bank.
-
open-market operations
- The buying and selling of U.S.
- government bonds by the Fed
- with the goal of regulating the
- money supply.
-
discount rate
- The interest rate that the Fed
- charges for loans to member
- banks.
-
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.
-
demand deposit
- The technical name for a
- checking account the money
- in a demand deposit can be
- withdrawn anytime on demand
- from the depositor.
-
time deposit
- The technical name for a
- savings account the bank can
- require prior notice before the
- owner withdraws money from a
- time deposit
-
certificate of deposit (CD)
- A time-deposit (savings)
- account that earns interest to
- be delivered at the end of the
- certificate's maturity date.
-
savings and loan
association (S&L)
- A financial institution that
- accepts both savings and
- checking deposits and
- provides home mortgage
- loans.
-
credit unions
- Nonprofit, member-owned
- financial cooperatives that offer
- the full variety of banking
- services to their members.
-
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).
-
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.
|
|
