Term
| What is anything that people generally accept as payment for goods and services? |
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Definition
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Term
| Who is in charge of money in the United States? |
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Definition
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Term
| What was one of the most popular currencies until the 1880s? |
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Definition
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Term
| What is the direct trading of goods or services for other goods or services? |
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Definition
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Term
| What are the 5 standards for a useful form of money? |
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Definition
| Portability, divisibility, stability, durability, and uniqueness? |
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Term
| What is the amount of money the Federal Reserve Bank makes available for people to buy goods and services? |
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Definition
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Term
| What is it called when the Federal Reserve creates more money when it believes that money is needed to get the economy moving again? |
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Definition
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Term
| What is money that can be accessed quickly and easily? Includes coins, paper money, checks, and travelers checks. |
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Definition
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Term
| What is money included in M-1 plus money that may take a little more time to obtain? Includes savings accounts, money market accounts, mutual funds, and certificates of deposits. |
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Definition
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Term
| What is M-2 plus big deposits like institutional money market funds? |
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Definition
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Term
| What is a percentage of commercial banks' checking and savings accounts that must be physically kept in banks? |
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Definition
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Term
| T/F The Federal Reserve is part of the US government? |
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Definition
| False, it is a private firm that is not funded by taxpayers |
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Term
| What are the 3 tools the Federal Reserve uses to manage the money supply? |
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Definition
| Reserve requirements, open-market operations, and the discount rate |
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Term
| What happens when the Federal Reserve increases reserve requirements in banks? |
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Definition
| Less money to lend to customer and the economy slows |
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Term
| What happens when the Federal Reserve decreases the reserve requirement to banks? |
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Definition
| There is more money to lend to customers and the economy speeds up |
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Term
| What is the buying and selling of US government bonds by the Federal Reserve with the goal of regulating the money supply? |
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Definition
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Term
| What happens when the Federal Reserve sells bonds? |
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Definition
| Money flows from the economy to the Federal Reserve and the economy slows |
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Term
| What happens when the Federal Reserve buys bonds? |
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Definition
| Money flows into the economy from the Federal Reserve and the economy speeds up |
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Term
| What is the interest rate that the Federal Reserve charges for loans to member banks? |
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Definition
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Term
| What happens when the Federal Reserve increases the discount rate? |
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Definition
| Banks borrow less from the Federal Reserve, there's less money to lend, and the economy slows |
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Term
| What happens when the Federal Reserve decreases the discount rate? |
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Definition
| Banks borrow more from the Federal Reserve, there is more money to lend, and the economy speeds up |
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Term
| When would the Federal Reserve do their check-clearing role? |
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Definition
| When a check is used from another state |
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Term
| What were established to lend money to farmers? |
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Definition
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Term
| In 1791, after the US gained its independence, what president persuaded Congress to create a central bank? |
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Definition
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Term
| What is 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? |
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Definition
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Term
| What is the technical name for a checking account; the money in an account can be withdrawn at any time. |
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Definition
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Term
| What is the technical name for a savings account? Banks can require notice to withdraw them. |
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Definition
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Term
| What is a time-deposit (savings) account that earns interest to be delivered at the end of the certificates maturity date? |
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Definition
| Certificate of deposit (CD) |
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Term
| What is a financial institution that accepts both savings and checking deposits and provides home mortgage loans? |
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Definition
| Savings and loan association (S&L) |
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Term
| What is a nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members? |
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Definition
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Term
| What are financial organizations that accept no deposits but offer many of the services provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer financial companies, and brokerage houses) |
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Definition
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Term
| What are amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire? |
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Definition
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Term
| Life insurance companies, pension funds, brokerage firms, and commercial and consumer finance companies are considered what kind of bank? |
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Definition
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Term
| What is an independent agency of the US government that insures bank deposits? |
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Definition
| Federal Deposit Insurance Corporation (FDIC) |
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Term
| What is part of the FDIC that insures holders of accounts in savings and loan associations? |
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Definition
| Savings Association Insurance Fund (SAIF) |
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Term
| What provides up to $250,000 coverage per individual per institution? |
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Definition
| The National Credit Union Administration (NCUA) |
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Term
| What is a computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks? |
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Definition
| Electronic funds transfer (EFT) system |
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Term
| What is an electronic funds transfer tool that serves the same function as check? It withdraws funds from a checking account |
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Definition
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Term
| What is an electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license card, and more? |
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Definition
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Term
| What are the chips called on credit or debit cards? |
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Definition
| Radio frequency identification (RFID) |
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Term
| What is a promise by the bank to pay the seller a given amount if certain conditions are met? |
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Definition
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Term
| What's a promise that the bank will pay some specified amount at a particular time? |
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Definition
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Term
| What is the bank primarily responsible for financing economic development? Also known as the International Bank for Reconstruction and Development? |
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Definition
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Term
| What is an organization that assists the smooth flow of money among nations? |
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Definition
| International Monetary Fund (IMF) |
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