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Study sets matching "banking vocab chapter 3"

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Study sets matching "banking vocab chapter 3"

32 terms
Money and Banking Chapter 3
Money market
Secondary market
Primary market
Capital market
A financial market in which only short-term debt instruments​…
A financial market in which securities that have been previou…
A financial market in which new issues of a​ security, such a…
A market in which​ longer-term debt​ (generally those with or…
Money market
A financial market in which only short-term debt instruments​…
Secondary market
A financial market in which securities that have been previou…
7 terms
Banking Chapter 3 Vocab
Credit (Purchases)
Credit Card
Credit Limit
Charge
the ability to make purchases with the promise that the money…
a card issued by a bank, store or business that allows the ca…
the maximum amount of $$ that a credit card issuer will allow…
monies borrowed using a credit card
Credit (Purchases)
the ability to make purchases with the promise that the money…
Credit Card
a card issued by a bank, store or business that allows the ca…
18 terms
Banking Chapter 3
money
three functions of money
Medium of Exchange
transaction cost
anything that is generally accepted in payment for goods or s…
a medium of exchange, as a unit of account, and as a store of…
- is that it is used to pay for goods and services... -promotes…
The time spent trying to exchange goods or services
money
anything that is generally accepted in payment for goods or s…
three functions of money
a medium of exchange, as a unit of account, and as a store of…
21 terms
Banking and Finance - Chapter 3
Money Management
Safe Deposit Box
Personal Financial Statement
Personal Balance Sheet
Planning how to get the most from your money.
A small, secure storage compartment that you can rent in a ba…
A document that provides information about an individual's cu…
Also a net worth statement, a financial statement that lists…
Money Management
Planning how to get the most from your money.
Safe Deposit Box
A small, secure storage compartment that you can rent in a ba…
22 terms
Banking Chapter 3
Point-of-Sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic access card that enables the cardholder to withdraw…
Point-of-Sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
10 terms
Chapter 3 Personal Banking
When simple interest is added to the a…
Interest paid on both the principal an…
Money paid to an individual or institu…
When interest is charged on the unpaid…
Add-on Plan
Compound Interest
Interest
Monthly Installment Plan
When simple interest is added to the a…
Add-on Plan
Interest paid on both the principal an…
Compound Interest
28 terms
Chapter 3 - Banking Terms
Checking Account
Check
EFT
Payee
Account at a financial institution that allows customers to d…
Written order used to tell a bank to pay money from a specifi…
Process of moving funds electronically
Receiver of a check or transferred funds
Checking Account
Account at a financial institution that allows customers to d…
Check
Written order used to tell a bank to pay money from a specifi…
22 terms
Banking Chapter 3 Terms
Point-of-sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic accesses card that enables the card-holder to withd…
Point-of-sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
26 terms
chapter 3 banking
truth in lending act
equal credit opportunity act
fair credit reporting act
fair debt collection practice act
title I of the consumer credit protection act of 1968, was la…
prohibits the use of of race, color, religion, national origi…
aims to protect the information that credit bureaus, medical…
protects consumers from unfair collection techniques
truth in lending act
title I of the consumer credit protection act of 1968, was la…
equal credit opportunity act
prohibits the use of of race, color, religion, national origi…
18 terms
Business Math Chapter 3 Banking Vocabulary
Balance
Bank Charges
Branch
Checkbook
the difference between credits and debits in an account
money paid to a bank for the bank's services etc.
local office or bureau of a bank
book containing detachable checks; chequebook (UK)
Balance
the difference between credits and debits in an account
Bank Charges
money paid to a bank for the bank's services etc.
18 terms
BANKING - Chapter 3
(T,F) An increase in money supply and…
(T,F) By law, every bank in the United…
(T,F) One of the main functions of the…
(T,F) All economics agree that the Fed…
True
False
True
False
(T,F) An increase in money supply and…
True
(T,F) By law, every bank in the United…
False
18 terms
BANKING - Chapter 3
(T,F) An increase in money supply and…
(T,F) By law, every bank in the United…
(T,F) One of the main functions of the…
(T,F) All economics agree that the Fed…
True
False
True
False
(T,F) An increase in money supply and…
True
(T,F) By law, every bank in the United…
False
31 terms
Banking & Finances (Chapter 3 Vocabulary)
asset
interest
maturity
gain
something of value
the fee charged for borrowing money
the date on which the investor can receive the initial invest…
increase income
asset
something of value
interest
the fee charged for borrowing money
16 terms
Banking Administration Chapter 3
organizational forms
stockholders
unit banks
branching organizations
the structure of operations, facilities, and personnel within…
the owners of a business who hold one or more shares of commo…
banks that offer the full range of their services from one of…
an arrangement in which a bank offers a full range of service…
organizational forms
the structure of operations, facilities, and personnel within…
stockholders
the owners of a business who hold one or more shares of commo…
51 terms
Chapter 3 Money & Banking
Compensation for Inflation
Compensation for Default Risk
The interest rate on a loan should...
The interest rate links...
if price rises, the payment received will buy fewer goods and…
the borrower might default on the loan
cover the opportunity cost of supplying credit so that the in…
the financial present with the financial future
Compensation for Inflation
if price rises, the payment received will buy fewer goods and…
Compensation for Default Risk
the borrower might default on the loan
34 terms
Money and Banking Chapter 3
future value
compounding
Present value
time value of money
the value at some future time of an investment made today
the process of earning interest on interest, as savings accum…
the value today of funds that will be received in the future
the way that the value of a payment changes depending on when…
future value
the value at some future time of an investment made today
compounding
the process of earning interest on interest, as savings accum…
40 terms
Banking Systems 2nd Ed. Chapter 3
Adverse feedback loop
Asia Pacific Economic Cooperation (APEC)
Balance of payments
Bank for International Settlements (BIS)
occurs when financial disruptions cause investment and consum…
21 members of APEC are referred to as "member economies." APE…
record of all the exchanges of goods and services that occur…
bank for central banks that serves only countries with a focu…
Adverse feedback loop
occurs when financial disruptions cause investment and consum…
Asia Pacific Economic Cooperation (APEC)
21 members of APEC are referred to as "member economies." APE…
22 terms
Banking Chapter 3
Point-of-Sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic access card that enables the cardholder to withdraw…
Point-of-Sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
15 terms
Banking Chapter 3
Member bank
District reserve bank
Truth in Lending Act (TILA)
Equal Credit Opportunity Act (ECOA)
...
...
...
...
Member bank
...
District reserve bank
...
Banking Chapter 3
Checking account
withdraw
Reconciling
Deposit
Demand Account with money withdrawn through various ways
Taking money out Check debit card ATM
Process of adjusting checkbook register and bank statement so…
money in
Checking account
Demand Account with money withdrawn through various ways
withdraw
Taking money out Check debit card ATM
33 terms
Banking Chapter 3
Point-of-Sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic access card that enables the cardholder to withdraw…
Point-of-Sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
13 terms
banking final chapter 3
e
e
e
a
the largest banks possess some potential advantages over smal…
In the United States there are close to __________ commercial…
Which of the following is considered an advantage of branch b…
A bank which offers its full range of services from only one…
e
the largest banks possess some potential advantages over smal…
e
In the United States there are close to __________ commercial…
21 terms
Banking Chapter 3
adverse feedback loop
balance of payments
Call report
CAMELS
as the economy cools off, more and more workers are laid off,…
a record of all the exchanges of goods and services that occu…
a report banks are required to complete quarterly that reflec…
Examiners use this system to evaluate six criteria of safety…
adverse feedback loop
as the economy cools off, more and more workers are laid off,…
balance of payments
a record of all the exchanges of goods and services that occu…
22 terms
Banking Chapter 3
Point-of-Sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic access card that enables the cardholder to withdraw…
Point-of-Sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
19 terms
Money and Banking Chapter 3
currency
wealth
income
medium of exchange
paper money and coins
the total collection of pieces of property that serve to stor…
a flow of earnings per unit of time
function of money; used to pay for goods and services
currency
paper money and coins
wealth
the total collection of pieces of property that serve to stor…
44 terms
Chapter 3 (Banking)
Checking Account
Check
Withdrawal
Deposit
demand deposit account on which checks are drawn
written in order to a bank to pay a person/business
involves taking money from your account (writing checks, usin…
money that can be made to your account (endorsing a check, di…
Checking Account
demand deposit account on which checks are drawn
Check
written in order to a bank to pay a person/business
28 terms
Banking chapter 3
Money management
Safe deposit box
Delayed gradification
Personal financial statements
Plans how to get most of your money
Small secure box in bank
Put off something now to get something better later
Provide info about current financial positions/situations
Money management
Plans how to get most of your money
Safe deposit box
Small secure box in bank
14 terms
money and banking chapter 3
money
wealth
income
medium of exchange
anything that is generally accepted in payment for goods or s…
all resources owned by an individual, including all assets.
the flow of earnings.
anything that is used to pay for goods and services.
money
anything that is generally accepted in payment for goods or s…
wealth
all resources owned by an individual, including all assets.
17 terms
Money and Banking Chapter 3
currency
wealth
income
medium of exchange
paper money
the total collection of pieces of property that serve to stor…
flow of earnings per unit of time
money used to pay for goods and services
currency
paper money
wealth
the total collection of pieces of property that serve to stor…
9 terms
Chapter 3 Banking Vocab
A report banks are required to complet…
A rating of how well a foreign bank is…
A record of all the exchanges of goods…
Protects consumers from unfair collect…
call report
Strength of Support Assessment (SOSA)
balance of payments
Fair Debt Collection Practices Act (FDCPA)
A report banks are required to complet…
call report
A rating of how well a foreign bank is…
Strength of Support Assessment (SOSA)
17 terms
Money and Banking - Chapter 3
Commodity money
Currency
E-cash
Electronic money
Money made up of precious metals or another valuable commodity.
Paper money (such as dollar bills) and coins
Electronic money that is used on the internet to purchase goo…
Money that exists only in electronic form and substitutes for…
Commodity money
Money made up of precious metals or another valuable commodity.
Currency
Paper money (such as dollar bills) and coins
12 terms
money and banking chapter 3
income
medium of exchange
unit of account
store of value
a flow of earnings per units of time
anything that is used to pay for goods and services
anything used to measure value in an economy
a repository of purchasing power over time
income
a flow of earnings per units of time
medium of exchange
anything that is used to pay for goods and services
32 terms
Chapter 3 Banking Systems
member bank
District Reserve Bank
what are the four structural elements…
what are the primary functions of the…
bank that belongs to the Federal Reserve System
carry out banking functions for government offices in their a…
Member banks. District Reserve Banks, Board of Governors and…
to serve as the government's bank, ... to ensure that the financ…
member bank
bank that belongs to the Federal Reserve System
District Reserve Bank
carry out banking functions for government offices in their a…
25 terms
Money and Banking Chapter 3
future value
compounding
present value
time value of money
the value at some future time of an investment made today
the process of earning interest on interest, as savings accum…
the value today of funds that will be received in the future
the way that the value of a payment changes depending on when…
future value
the value at some future time of an investment made today
compounding
the process of earning interest on interest, as savings accum…
21 terms
Money & Banking Chapter 3 Terms
Future Value
Compounding
Present Value
Time Value of Money
The value at some future time of an investment made today.
The process of earning interest on interest, as savings accum…
The value today of funds that will be received in the future.
The way that the value of a payment changes depending on when…
Future Value
The value at some future time of an investment made today.
Compounding
The process of earning interest on interest, as savings accum…
40 terms
Money and Banking Chapter 3
Money
Currency
Wealth
Income
Anything that is generally accepted as payment for goods or s…
Paper money and coins
Includes not only money but also other assets such as bonds,…
A flow of earnings per unit of time
Money
Anything that is generally accepted as payment for goods or s…
Currency
Paper money and coins
19 terms
Banking Chapter 3
Credit
Credit Card
Credit limit
Charge
the ability to make purchases with the promise that the money…
a card issued by a bank, retail store or business that allows…
the maximum amount of money that the credit card issuer will…
monies borrowed using a credit card
Credit
the ability to make purchases with the promise that the money…
Credit Card
a card issued by a bank, retail store or business that allows…
16 terms
Money and Banking Chapter 3
Currency
Income
Functions of Money
Medium of Exchange
Paper money or coin
Flow of earning per unit of time
The three functions of money : medium of exchange, unit of ac…
Money in the form of currency and checks used to pay for good…
Currency
Paper money or coin
Income
Flow of earning per unit of time
21 terms
Money, Banking, and the Financial System Chapter 3
Future Value
Compounding
Present Value
Time value of money
The value at some future time of an investment made today
The process of earning interest on interest, as savings accum…
The value today of funds that will be received in the future
The way that the value of a payment changes depending on when…
Future Value
The value at some future time of an investment made today
Compounding
The process of earning interest on interest, as savings accum…
17 terms
Money and Banking Chapter 3
Money
Currency
Wealth
Income
Assets that people are generally willing to accept in exchang…
Coins and paper bills used as money
An inclusive term encompassing all a person's material assets…
Amount of money, or its equivalent, received during a period…
Money
Assets that people are generally willing to accept in exchang…
Currency
Coins and paper bills used as money
26 terms
Money & Banking Chapter 3
Future Value =
Present Value
Time value of money
discounting
principal x (1+i)^n
the value today of the funds that will be received in the fut…
the way the value of a payment changes depending on when the…
finding the present value of the funds received in the future
Future Value =
principal x (1+i)^n
Present Value
the value today of the funds that will be received in the fut…
34 terms
Money and banking Chapter 3
future value
compounding
Present value
time value of money
the value at some future time of an investment made today
the process of earning interest on interest, as savings accum…
the value today of funds that will be received in the future
the way that the value of a payment changes depending on when…
future value
the value at some future time of an investment made today
compounding
the process of earning interest on interest, as savings accum…
9 terms
Commercial Banking Chapter 3
Banks choose a state or national chart…
Differences between national and state…
Community bank characteristics
unit bank
True
- Regulators... - Option on Fed membership... - Ability to operate…
- Assets up to about $1bil-$5bil... - Privately owned, managed b…
community bank with just one office
Banks choose a state or national chart…
True
Differences between national and state…
- Regulators... - Option on Fed membership... - Ability to operate…
17 terms
Chapter 3: Banking services
activities a customer can do while usi…
example of an outstanding transaction
PIN
compound interest
withdraw or deposit money, make transfers between accounts, a…
A check recorded in the check register that the bank has not…
the personalized password that each customer must enter befor…
Interest is calculated and added to the previous balance to b…
activities a customer can do while usi…
withdraw or deposit money, make transfers between accounts, a…
example of an outstanding transaction
A check recorded in the check register that the bank has not…
27 terms
Money & Banking Chapter 3
Market interest rate
Interest rate
Future value
Compounding
Real interest rate + inflation premium + default risk premium…
Provides a link between the financial present and the financi…
The value at some future time of an investment made today
The process of earning interest on interest, as savings accum…
Market interest rate
Real interest rate + inflation premium + default risk premium…
Interest rate
Provides a link between the financial present and the financi…
31 terms
Investment Banking Chapter 3
Investment Banker
Initial Public Offering (IPO)
Underwriting
Originating house
Middleman who brings together investors and firms (and govern…
First sale of common stock to the general public
Purchase of an issue of new securities for subsequent sale by…
Investment banker who makes an agreement to sell a new issue…
Investment Banker
Middleman who brings together investors and firms (and govern…
Initial Public Offering (IPO)
First sale of common stock to the general public
13 terms
Chapter 3 Investment Banking
Investment banker
Initial public offering (IPO)
Underwriting
Originating house
Middleman who brings together investors and firms (and govern…
First sale of common stoke to the general public.
Purchase of an issue of new securities for subsequent sale by…
Investment banker who makes agreement to sell a new issue and…
Investment banker
Middleman who brings together investors and firms (and govern…
Initial public offering (IPO)
First sale of common stoke to the general public.
33 terms
Banking Chapter 3 KC
Point-of-Sale (POS)
Demand Deposits
Check Debit Card
ATM Card
A device used to transfer funds from a bank account to a reta…
Funds that a customer may withdraw from a bank with no advanc…
A plastic access card that enables the cardholder to purchase…
A plastic access card that enables the cardholder to withdraw…
Point-of-Sale (POS)
A device used to transfer funds from a bank account to a reta…
Demand Deposits
Funds that a customer may withdraw from a bank with no advanc…
18 terms
Economics of Finance and Banking Chapter 3
wealth
income
medium of exchange
money
total collection of of pieces of property that serve to store…
a flow of earnings per unit of time
used to pay goods and services
1. must be easily standardized, making it simple to ascertain…
wealth
total collection of of pieces of property that serve to store…
income
a flow of earnings per unit of time
71 terms
Chapter 3 Notes (Money and Banking)
Financing in which borrowers sell secu…
An institution like a bank stands betw…
Firms, such as banks and insurance com…
The only lingering distinction between…
Direct Finance
Indirect Finance
Financial Institution
Who owns the underlying asset
Financing in which borrowers sell secu…
Direct Finance
An institution like a bank stands betw…
Indirect Finance
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