Term
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Definition
| the study of money; how it's made, how it's lost, and how it's managed |
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Term
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Definition
| anythign generally accepted in exchange for goods and services |
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Term
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Definition
| money stored in an account at a bank or other financial institution that can be withdrawn without advance notice; also called a demand deposit |
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Term
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Definition
| accounts with funds that usually cannot be withdrawn without advance notice; also known as time deposits |
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Term
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Definition
| accounts that offer higher interest rates than standard bank rates but with greater restrictions |
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Term
| Certificates of Deposit (CDs) |
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Definition
| savings accounts that guarantee a depositor a set interest rate over a specified interval as long as teh funds are not withdrawn before the end of the period--six months or one year, for example |
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Term
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Definition
| means of access to preapproved lines of credit granted by a bank or finance company |
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Term
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Definition
| a card that looks like a credit card but works like a check; using it results in a direct, immediate, electronic payment fro mthe cardholder's checking account to a merchant or third party |
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Term
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Definition
| an independent agency of the federal government established in 1913 to regulate the nation's banking and financial industry |
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Term
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Definition
| means by which the Fed controls the amount of money avaiable in the economy |
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Term
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Definition
| decisions to buy or sell U.S. Treasury bills (short-term debt issued by the U.S. government) and other invesments in the open market |
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Term
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Definition
| the percentage of deposits that banking institutions must hold in reserve |
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Term
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Definition
| the rate of interest the Fed charges to loan money to any banking institution to meet reserve requirements |
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Term
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Definition
| the authority to establish and enforce credit rules for financial institutions and some private investors |
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Term
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Definition
| the largest and oldest of all financial institutions, relying mainly on checking and savings accounts as sources of funds for loans to businesses and individuals |
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Term
| Savings & Loan Associations (S&Ls) |
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Definition
| financial institutions that primarily offer savings accounts and make long-term loans for residential mortgages; also called "thrifts" |
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Term
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Definition
| a financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade, group, or religion |
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Term
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Definition
| financial institutions that are similar to savings and loan associations but, like credit unions, are owned and operated by their depositors |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| an insurance fund established in 1933 that insures individual bank accounts |
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Term
| National Credit Union Association (NCUA) |
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Definition
| an agency that regulates and charters credit unions and insures their deposits through its National Credit Union Insurance Fund |
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Term
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Definition
| businesses that protect their clients against financial losses from certain specified risks (death, accident, and theft, for example) |
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Term
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Definition
| managed investment pools set aside by individuals, corporations, unions, and some nonprofit organizations to provide retirement income for members |
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Term
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Definition
| an investment company that pools individual investor dollars and invests them in large numbers of well-diversified securities |
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Term
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Definition
| firms that buy and sell stocks, bonds, and other securities for their customers and provide other financial services |
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Term
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Definition
| underwrites new issues of securities for corporations, states, and municipalities |
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Term
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Definition
| businesses that offer short-term loans at substantially higher rates of interest than banks |
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Term
| Electronic Funds Transfer (EFT) |
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Definition
| amovement of funds means of an electronic terminal, telephone, computer, or magnetic tape |
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Term
| Automatic Teller Machine (ATM) |
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Definition
| the most familiar form of electronic banking, which dispenses cash, accepts deposits, and allows balance inquiries and cash transfers from one account to another |
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Term
| Automated Clearinghouses (ACHs) |
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Definition
| a system that permits payments such as deposits or withdrawals to be made to and from a bank account by magnetic computer tape |
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