Term
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Definition
| object that is portable, divisible, durable, and stable, and that serves as a medium of exchange, a store of value, and a measure of worth |
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Term
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Definition
| measure of the money supply that includes only the most liquid forms of money |
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Definition
| government-issued paper money and metal coins |
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Term
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Definition
| demand deposit order instructing a bank to pay a given sum to a specified payee |
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Term
| Checking Account (Demand Deposit) |
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Definition
| bank account funds, owned by the depositor, that may be withdrawn at any time by check or cash |
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Term
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Definition
| measure of the money supply that includes all the components of M-1 plus the forms of money that can be easily converted into spendable forms |
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Term
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Definition
| bank funds that have a fixed term of time to maturity and cannot be withdrawn earlier or transferred by check |
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Term
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Definition
| fund of short-term, low-risk financial securities purchased with the pooled assets of investor-owners |
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Term
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Definition
| company that accepts deposits that it uses to make loans, earns profits, pay interest to depositors, and pay dividends to owners |
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Term
| Savings And Loan Association (S&L) |
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Definition
| financial institution accepting deposits and making loans primarily for home mortgages |
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Term
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Definition
| financial institution whose depositors are owners sharing in its profits |
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Term
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Definition
| nonprofit, cooperative financial institution owned and run by its members, usually employees of a particular organization |
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Term
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Definition
| nondeposit pool of funds managed to provide retirement income for its members |
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Term
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Definition
| nondeposit institution that invests funds collected as premiums charged for insurance coverage |
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Term
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Definition
| nondeposit institution that specializes in making loans to businesses and consumers |
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Term
| Securities Investment Dealer (Broker) |
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Definition
| financial institution that buys and sells stocks and bonds both for investors and for its own accounts |
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Term
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Definition
| interest rate available to a bank's most creditworthy customers |
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Term
| Individual Retirement Account (IRA) |
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Definition
| tax-deferred pension fund that wage earners set up to supplement retirement funds |
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Definition
| management by a bank of an estate, investments, or other assets on behalf of an individual |
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Term
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Definition
| bank promise, issued for a buyer, to pay a designated firm a certain amount of money if specified conditions are met |
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Term
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Definition
| bank promise, issued for a buyer, to pay a designated firm a specified amount at a future date |
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Term
| Electronic Funds Transfer (EFT) |
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Definition
| communication of fund-transfer information over wire, cable, or microwave |
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Term
| Automated Teller Machine (ATM) |
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Definition
| electronic machine that allows bank customers to conduct account-related activities 24 hours a day, 7 days a week |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| federal agency that guarantees the safety of deposits up to $100,000 in the financial institutions that it insures |
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Term
| Federal Reserve System (The Fed) |
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Definition
| central bank of the United States, which acts as the government's bank, serves member commercial banks, and controls the nation's money supply |
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Term
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Definition
| management of the nation's economic growth by managing the money supply and interest rates |
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Term
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Definition
| percentage of its deposits that a bank must hold in cash or on deposit with the Fed |
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Term
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Definition
| interest rate at which member banks can borrow money from the Fed |
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Term
| Federal Funds Rate (Key Rate) |
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Definition
| interest rate at which commercial banks end reserves to each other, usually overnight |
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Term
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Definition
| the Fed's sale and purchase of securities in the open market |
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Term
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Definition
| plastic card that allows an individual to transfer money between accounts |
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Term
| Point-of-Sale (POS) Terminal |
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Definition
| electronic device that transfers funds from the customer's bank account to pay for retail purchases |
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Term
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Definition
| credit-card-sized plastic card with an embedded computer chip that can be programmed with electronic money |
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Term
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Definition
| UN agency that provides a limited scope of financial services, such as funding improvements in underdeveloped countries |
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Term
| International Monetary Fund (IMF) |
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Definition
| UN agency consisting of about 150 nations that have combined resources to promote stable exchange rates, provide temporary short-term loans, and serve other purposes |
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