Bus 10 Chapter 20
Money
Anything people generally accept as an intermediary form of exchange for goods and services
Nonbanks
Financial institutions that accept no deposits, but offer many of the services provided by regular banks
M2
M1 + money that may take a little time to obtain (savings accounts, mutual funds etc.)
M3
M2 + big deposits like institutional money market funds
exchange
Money _______ : Allows companies to go to a bank and exchange currencies to use in a particular country
M1
Money that can be accessed quickly (coins, paper money, travelers' checks, etc.)
National Credit
The _____ ______ Union Administration (NCUA): Provides up to $250,000 coverage per individual depositor per institution
Federal Deposit
The ______ ______ Insurance Corporation (FDIC): An independent agency of the U.s. government that insures banks deposits up to $250,000
Savings Association
The ______ ______ Insurance Fund (SAIF): Insures holders of accounts in savings and loan associations
Money Supply
The amount of money the Federal Reserve makes available for people
Barter
The direct trading of goods or services for other goods or services
Falling Dollar
____ ____ value: The amount of goods and services you can buy with a dollar decreases. (exports rise)
World Bank
____ _____ : Lends most of its money to less-developed nations to improve their productivity and help raise standards of living and quality of life
Time Deposit
____ _____A savings account; a bank can require a prior notice before you make a withdrawal
Demand
_____ Deposit: The technical name for a checking account; money is available on demand from the depositor
Electronic Transfer
_____ Funds ______ (ETF) System: Messages about a transaction are sent from one computer to another so funds can be transferred quickly and more economically
Debit Card
_____ ____ : Serves the same function as a check; it withdrawals funds from a checking account
Smart Card
_____ _____ : A combination of a credit card, debit card, phone card, driver's license, and more
Credit Unions
_____ _____ : Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members
Savings Loan
_____ and _____ Associations (S&Ls) : A financial institution that accepts both savings and checking deposits and provides home mortgage loans
Letter Credit
_____ of _____ : A promise by to pay the seller a given amount if certain conditions are met
Open Market
_____-______ Operations: The buying and selling of government bonds
Discount Rate
______ ____: The interest rate the Fed charges for loans to member banks
Reserve Requirement
______ ______ : The percentage of commercial banks' checking and savings account (cash) that must keep in the bank or in non-interest-bearing deposits at the local Federal Reserve district bank
Rising value
______ dollar ______ : The amount of goods and services you can buy with a dollar increases. (exports fall)
Banker Acceptance
______'s ________: A promise the bank will pay some specified amount at a particular time
Commercial Bank
_______ ______ : A profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and uses those funds to make loans
Certificate
_______ of Deposit: A savings account that earns interest, to be delivered on the certificate's maturity date
International Monetary Fund
__________ ________ ____ (IMF): Fosters cooperative monetary policies that stabilize the exchange of one national currency for another. About 185 countries are a part of the IMF
