(no subject)
banker's acceptance (p. 563)
A promise that the bank will pay some specified amount at a particular time
barter (p. 546)
The trading of goods and services for other goods and services directly.
certificate of deposit (CD) (p. 555)
A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity date.
commercial bank (p. 554)
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.
credit unions (p. 557)
Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.
debit card (p. 562)
An electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account.
demand deposit (p. 554)
The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor.
discount rate (p. 551)
The interest rate that the Fed charges for loans to member banks.
electronic check conversion (ECC) (p. 561)
An electronic funds transfer tool that converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve's Automated Clearing House.
electronic funds transfer (EFT) system (p. 561)
A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks.
Federal Deposit Insurance Corporation (FDIC) (p. 559)
An independent agency of the U.S. government that insures bank deposits.
International Monetary Fund (IMF) (p. 565)
Organization that assists the smooth flow of money among nations.
letter of credit (p. 563)
A promise by the bank to pay the seller a given amount if certain conditions are met.
M-1 (p. 547)
Money that can be accessed quickly and easily (coins and paper money, checks, traveler's checks, etc.).
M-2 (p. 547)
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.).
money (p. 546)
Anything that people generally accept as payment for goods and services.
money supply (p. 547)
The amount of money the Federal Reserve Bank makes available for people to buy goods and services.
nonbanks (p. 554)
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).
open-market operations (p. 550)
The buying and selling of U.S. government bonds by the Fed with the goal of regulating the money supply.
pension funds (p. 558)
Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire.
reserve requirement (p. 550)
A percentage of commercial banks' checking and savings accounts that must be physically kept in the bank.
savings and loan association (S&L) (p. 557)
A financial institution that accepts both savings and checking deposits and provides home mortgage loans.
Savings Association Insurance Fund (SAIF) (p. 559)
The part of the FDIC that insures holders of accounts in savings and loan associations.
smart card (p. 562)
An electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license card, and more.
time deposit (p. 555)
The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit.
World Bank (p. 564)
The bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development.