Create an account
Anything generally accepted as a means of paying for goods and services; serves as a medium of exchange, a unit of accounting, a store of value, and a standard of deferred value
The central banking system of the United States; responsible for regulating banks and implementing monetary policy
Federal Reserve System
Interest rate that member banks charge each other to borrow money overnight from the funds they keep in the Federal Reserve accounts
federal funds rate
Sums of money, equal to a certain percentage of their deposits, that banks are legally required to keep on hand
( FDIC) Federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails
Federal Deposit Insurance Corporation
Financial market in which mortgages are bought and sold, providing much of the funds that are loaned to home buyers
secondary mortgage market
Financial institutions that accept deposits, offer various types of checking and savings accounts, and provide loans
Banks that provide financial services to businesses; can also refer to private equity management
Banking institutions that offer deposit accounts and focus on offering home mortgage loans; also called thrifts or savings and loan associations
Not- for- profit, member- owned cooperatives that offer deposit accounts and lending services to consumers and small businesses
Firms that offer a variety of services related to initial public stock offerings, mergers and acquisitions, and other investment matters
Nonbank companies that initiate loans on behalf of a mortgage lender in exchange for a fee
Nonbank institutions that lend money to consumers and businesses for cars and other vehicles, home improvements, expansion, purchases, and other purposes
Companies that offer opinions about the creditworthiness of borrowers and of specific investments
credit rating agencies
Market situation in which frenzied demand for an asset pushes the price of that asset far beyond its true economic value
The percentage of an asset's market value that a lender is willing to finance when offering a loan; the rest of the purchase price has to be paid by the buyer as a down payment
loan-to-value ( LTV)
( ARM) Mortgage that features variable interest rates over the life of the loan
adjustable rate mortgage
Payment situation in which the balance owed on a loan increases over time rather than decreases
Process in which debts such as mortgages are pooled together and transformed into investments
( ABSs) Credit derivatives based on auto loans, credit card debts, and other loan assets
Severe shortage of liquidity throughout a sector of the economy or the entire economy, during which companies can't get enough cash to meet their operating needs
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