Banking and the Federal Reserve System Study Guide
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22 terms
Terms | Definitions |
|---|---|
 Fed (Federal Reserve System) | lends money to member banks; the bank for bankers |
| Credit Rating | A measure of one's ability to repay loans. |
| Subprime loans | Lending money to people who don't have the money to pay the loan |
| bailout | When the federal government helps an industry with financial problems. |
| FDTC | A federal insurance company that insures individual savings accounts. |
| Reserve ratio | The amount of money that a bank is to deposit with the Fed. |
| Interest (#1) | A fee banks and lenders charge for borrowing money. |
| Checks | A safe way to transfer your money. |
| Discount rate | The amount of interest banks pay to the Fed for the loans. |
| Money | A current medium of exchange in the form of coins and banknotes |
| Loan | Money lend by a bank to individuals or businesses. |
| Currency | Paper money and coins issued by a government. |
| Credit History | Data collected on a individual's bill paying and spending habits |
| Banking System | A federally supervised system of member banks who must follow the Fed's Rules |
| Board of Governors | Runs the Fed/7 members/serve for 14 years/chairman serves for 4 years/appointed by the President and confirmed by the senate. |
| Credit | Borrowing money to buy something now, but pay later |
| Debit | Money that is spent directly out of your banks account. |
| District Banks | 12 regional Federal Reserve Banks. Each bank is run by a Board of Directors. |
| Foreclosure | When a bank legally takes back a home from an owner who has not made payments. |
| Interest (#2) | Money a bank pays individuals for keeping money deposited in savings. |
| Mortgage | A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. |
| Board of Directors | a group of persons chosen to govern the affairs of a corporation or other large institution. |
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