Modern Banking
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16 terms
Terms | Definitions |
|---|---|
 Federal Reserve System | (Fed) first true central bank |
| Central bank | bank that can lend to other banks in times of need |
| Federal Reserve note | paper currency issued by the Fed that eventually replaced all other types of federal currency |
| Run on the Bank | a rush by depositors to withdraw their funds from a bank before it failed |
| Bank holiday | a brief period during which every bank in the country was required to close |
| commercial bank | banks that catered to the interests of business & commerce |
| demand deposit account (DDA) | accounts whose funds could be removed by simply writing a check without prior approval from the depository institution |
| thrift institution (thrifts) | other financial institutions |
| mutual savings bank (MSB) | a depositor-owned financial organization operated only for the benefit of its depositors |
| savings bank | sell stocks to raise additional financial capital. They were no longer mutually owned by depositors |
| NOW accounts (Negotiable Order of Withdrawal) | a type of checking account that pays interest |
| savings & loan association (S&L) | a depository institution that invests the majority of its funds in home mortgages |
| credit union | a nonprofit service cooperative that is owned by & operated for the benefit of its members |
| share draft account | interest earning checking accounts |
| deregulation | the removal or relaxation of government restrictions on business |
| creditor | a person or institution to whom money is owed |
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