Econ 165 CH 7 VOCAB

Anything that is generally accepted as a medium of exchange

Something that is generally accepted as payment for goods, service, and resources; the primary function of money

Measured by the goods, services, and resources that money can purchase

System in which goods and services are exchanged for each other rather than for money

A function of money; the value of every good, service, and resource can be expressed in terms of an economy's base unit of money

A function of money; allows for saving, or storing wealth for future use, and permits credit, or delayed payments

Narrowest definition of the US money supply; includes coins and paper money in circulation, some traveler's checks, most demand deposits, and other checkable deposits

Money with a face value greater than the value of this commodity from which it is made

Paper money issued by the Federal Reserve Banks; includes almost all paper money in circulation

Coins and paper money

Checking account balances kept primarily at commercial banks

Interest-bearing accounts similar to demand deposits offered by financial institutions

Average number of times the money supply is turned over in a year in relationship to GDP

M1 plus savings and small-denomination time deposit accounts, money market deposit accounts, and other financial instruments

Ease of converting an asset to its value in cash or spendable funds

An economy's money is backed by something of tangible value such as gold or silver

An economy's money is not backed by anything of tangible value such as gold or silver

Institution that accepts and maintains deposits and makes loans; can create and destroy money

Institution that holds and maintains checking accounts (demand deposits) for its customers, makes commercial (business) and other loans, and performs other functions

Label given to the US banking system because both the federal and state governments have the right to charter banks

Commerial bank incorporated under a federal rather than a state character

Commercial bank incorparated under a state character

Government agency established in 1933 to insure deposits in commercial banks up to a specified amount

Something that an individual or business owns; can be used to cover liabilities

A claim on assets; an obligation or a debt of an individual or a business

Assets minus liabilities; the monetary value of a business

Coordinates commercial banking operations, regulates some aspects of all depository institutions, and oversees the US money supply

Seven-member board heading the Federal Reserve System; develops policies concerning money, banking, and other financial institutional practices

Oversees the buying and selling of government securities by the Federal Reserve System

12 banks that deal with commercial banks and other financial institutions

Deposit in the name of a financial institution held at a Federal Reserve Bank or other designated place

Interbank relationship involving deposits and various services

Legislation that increased the similarity among many financial institutions and increased the control of the Federal Reserve System

Federal agency created to reorganize troubled savings and loans or to deal with their affairs if they failed and closed

Federal agency established in 1934 to insure deposits in savings and loan institutions; the FDIC took over many of its functions when the FSLIC was dissolved in 1989

An expression used to refer to corporate and government borrowing on a very short-term basis

Pool of money form depositors that is used to make investments

Strengthened the deregulatory trend begun by the Monetary Control Act of 1980

Allows banking organizations from one state to open or acquire banks, and to open branches, in other states

Allows bank holding companies that meet vertain standards to become financial holding companies

The performance of services in more than one state by a single banking organization

Operation of one bank with no branches

Corporation formed for the purpose of owning, or holding, controlling shares of stock in a bank, or banks

A holding company that can engage in banking, securities, insurance and other financial activities

Operation of more than one facility by a bank to perform its functions