(18) Understanding Money, Banking, and Credit

A system of exchange in which goods or services are traded directly for others goods or services

Anything a society uses to purchase products, services, or resources

A means of retaining and accumulating wealth

An amount on deposit in a checking account

An amount on deposit in an interest-bearing savings account or certificate of deposit

The central bank of the United States responsible for regulating the banking industry

A short-term promissory note issued by a large corporation

The percentage of its deposit a bank must retain, either in its own vault or on deposit with its Federal Reverse district bank

The interest rate the Federal Reverse System charges for loans to member banks

The buying and selling of U.S. government securities by the Federal Reserve System for the purpose of controlling the supply of money

The interest rate at which a bank lends immediately available funds on deposit at the Fed to another bank overnight to meet the borrowing bank's reserve requirements

A profit-making organization that accepts deposits, make loans, and provides related services to its customers

A commercial bank chartered by the U.S. Comptroller of the Currency

A commercial bank chartered by the banking authorities in the state in which it operates

A financial institution that offers checking and savings accounts and CDs and that invests most of its assets in home mortgage loans and other consumer loans

A financial institution that accepts deposits from, and lends money to, only the people who are its members

An interest-paying checking account; (negotiable order of withdrawal)

A document stating that the bank will pay the depositor a guaranteed interest rate on money left on deposit for specified period of time

A loan that is approved before the money is actually needed

A guaranteed line of credit

Real estate or property pledged as security for a loan

A means of performing financial transactions through a computer terminal or telephone hookup

A legal document issued by a bank or other financial institution guaranteeing to pay a seller a stated amount for specified period of time

A written order for a bank to pay a third party a stated amount of money on specific date

purchasing power that is exchanged for a promise to repay borrowed money, with or without interest at a later date