Upgrade to remove ads
Only $2.99/month

Chapter 15: Money and Banking

Terms in this set (37)

money
anything of value that is accepted in return for goods/services
barter
to exchange one good or service for another
banknote
type of document guaranteeing the payment of a specific amount of money, either on demand, or at a set of time with the payer named on the document
security
type of financial investment issued by a corporation, government or other organization
government bond
security that pays interest over terms of 10-30 years
treasury note
security that pays interest over terms ranging from 2-10 years
treasury bill
security that matures in a year or less
medium of exchange
money used in exchange for G/S needed by individuals, business and governments
unit of value
money that is common measure of the worth or price of a G/S
store of value
money can be saved and used at a later date
stable
value of money must maintain its value over time in order for it to be widely accepted
properties of money
characteristics include being stable, recognized, divisible, portable and durable
Federal Reserve Bank
The United States central bank
monetary system
mechanism a nation uses to provide and manage money for itself
monetary policy
action taken to manage the supply of money and interest rates in an economy
FDIC
provides insurance for depositors in insured banks
financial exchange
process of transferring money from one individual or organization to another
credit card
plastic card that allows the holder to make credit purchases up to an authorized amount
Types of financial exchange
Include cash, credit cards, debit cards, electronic funds transfer (EFT)
debit card
allows customers to pay for purchased directly from their checking account
electronic funds transfer (EFT)
transfer of money from one back account to another
financial institution
any organization that provides services related to money
depository institution
financial institution that accepts money from customers and deposits it into the customer's account
deposit
money placed into an account
commercial bank
largest category of deposit institution
credit union
nonprofit financial institution that is privately owned and provides banking services for its members
savings and loan institution
financial institution that offers savings and loan services.
nondepository institution
financial institution that does not accept deposits
insurance company
for-profit business that primarily sells insurance products. Protection for customers from risks that can result in financial distress, such as accidents and death.
securities firm
financial institution that is involved in trading securities in financial markets.
investment bank
financial institution that provides services for businesses...they help raise money for expansion or maintenance of a business.
finance company
financial institution that makes money by issuing loans.
checking account
bank account that allows the account owner to make deposits, write checks and withdraw money
check
written order for the bank to pay a specific amount to the person or organization to which the check is written
savings account
bank account used by depositors to accumulate money for future use
line of credit
prearranged amount of credit that is available for a business to use as needed
letter of credit
document guaranteeing that a buyer will pay the seller the agreed-upon amount and within the time specified
THIS SET IS OFTEN IN FOLDERS WITH...