The flashcards below were created by user
marcyourspot
on FreezingBlue Flashcards.
-
Barter System
A system of exchange in which goods or services are traded directly for others goods or services
-
Medium of Exchange
Anything a society uses to purchase products, services, or resources
-
Store of Value
A means of retaining and accumulating wealth
-
Demand Deposit
An amount on deposit in a checking account
-
Time Deposit
An amount on deposit in an interest-bearing savings account or certificate of deposit
-
Federal Reserve System
The central bank of the United States responsible for regulating the banking industry
-
Commercial Paper
A short-term promissory note issued by a large corporation
-
Reserve Requirement
The percentage of its deposit a bank must retain, either in its own vault or on deposit with its Federal Reverse district bank
-
Discount Rate
The interest rate the Federal Reverse System charges for loans to member banks
-
Open-Market Operations
The buying and selling of U.S. government securities by the Federal Reserve System for the purpose of controlling the supply of money
-
Federal Funds Rate
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
-
Commercial Bank
A profit-making organization that accepts deposits, make loans, and provides related services to its customers
-
National Bank
A commercial bank chartered by the U.S. Comptroller of the Currency
-
State Bank
A commercial bank chartered by the banking authorities in the state in which it operates
-
Savings and Loan association (S&L)
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
-
Credit Union
A financial institution that accepts deposits from, and lends money to, only the people who are its members
-
Now Account
An interest-paying checking account; (negotiable order of withdrawal)
-
Certificate Deposit (CD)
A document stating that the bank will pay the depositor a guaranteed interest rate on money left on deposit for specified period of time
-
Line of Credit
A loan that is approved before the money is actually needed
-
Revolving Credit Agreement
A guaranteed line of credit
-
Collateral
Real estate or property pledged as security for a loan
-
Electronic Funds Transfer (EFT) System
A means of performing financial transactions through a computer terminal or telephone hookup
-
Letter of Credit
A legal document issued by a bank or other financial institution guaranteeing to pay a seller a stated amount for specified period of time
-
Banker's Acceptance
A written order for a bank to pay a third party a stated amount of money on specific date
-
Credit
purchasing power that is exchanged for a promise to repay borrowed money, with or without interest at a later date
|
|