Ch. 8 Voc.
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Created by:
ChrisGrantham on February 28, 2012
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13 terms
Terms | Definitions |
|---|---|
 ATM | an unattended machine (outside some banks) that dispenses money when a personal coded card is used |
| Commercial Lending | loans to business enterprises |
| Development Bank | An investment and / or loan fund that aids the edevelopment of underdeveloped countries |
| Discount Rate | interest on an annual basis deducted in advance on a loan |
| Federal Reserve System | the central bank of the United States |
| IMF | a United Nations agency to promote trade by increasing the exchange stability of the major currencies |
| Lock Box | Applies to a commercial loan, typically required like an escrow account. It is a lender/cash flow protection mechanism where when the mortgage is paid, P and I is paid along with T and I (taxes and insurance) against loss. The lender wants to be sure that they have the required money. It is can be more dramatic, with all income except withheld expenses going into a separate account that the lender decides how to pay out. They will then send the balance back. |
| Open Market Operations | the buying and selling of government securities to alter the supply of money |
| Reserve Requirement | This is the percentage of their deposits that member banks must keep available in a Federal Reserve Bank. |
| Safe-Deposite Box | small storage compartmentthat you can rent in a bank |
| Trust | a consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service |
| World Bank | a United Nations agency created to assist developing nations by loans guaranteed by member governments |
| Debit Card | a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account |
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