Chapter 21 Vocabulary

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					Chapter 21 Understanding Money and Financial Institutions
Banker’s acceptance      Discount rate          Barter                        Smart card
electronic funds         Electronic check       Savings Association           Savings and loan
transfer (EFT) system    conversion (ECC)       Insurance Fund (SAIF)         association
Certificate of deposit   Letter of credit       Non-banks                     Time deposit
Commercial bank          M-1                    Open-market operations        World Bank
Credit unions            M–2                    Federal Deposit Insurance     International
                                                corporation (FDIC)            monetary fund
Debit card               Money                  Reserve requirement           Pension funds
Demand deposit           Money supply

   1. ________________________________ is a non-profit, member owned financial
       cooperatives that offers the full variety of banking services to their customers.
   2. ________________________________ is an electronic funds transfer tool that converts
       a traditional paper check into an electronic transaction at the cash register and
       processes it through the Federal reserve’s Automated Clearing House.
   3. ________________________________ is a percentage of commercial bank’s funds
       checking and savings accounts that must be physically kept in the bank.
   4. ________________________________ is the technical name for a savings account for
       which the bank can require prior notice before the owner withdraws money.
   5. ________________________________ is a promise that the bank will pay some
       specified amount at a particular time.
   6. ________________________________ is anything that people generally accept as
       payment for goods and services.
   7. ____________________ is the interest rate the Fed charges for loans to member banks.
   8. ________________________________ are financial organizations that accept no
       deposits, but offer many of the services provided by regular banks, including pension
       funds, insurance companies, commercial finance companies, consumer finance
       companies and brokerage houses.
   9. ____________________________ is a time deposit (savings) account that earns interest
       to be delivered at the certificate’s maturity date.
   10. ___________________________ is a computerized system that electronically performs
       financial transactions such as making purchases, paying bills, and receiving paychecks.
   11. ________________________________ is the part of the FDIC that insures holders of
       accounts in savings and loan associations.
   12. ________________________________ is an electronic funds transfer tool which serves
       the same function as checks, in that it withdraws funds from a checking account.
   13. __________________ is the trading of goods and services for other goods and services.
   14. ________________________________ is a financial institution that accepts both
       savings and checking deposits and provides home mortgages.
   15. __________________________ is how much money there is to buy available goods and
   16. ________________________________ is a promise by a bank that a given amount will
       be paid if certain conditions are met.
   17. ________________________________ are amounts of money put aside by
       corporations, non-profit organizations, or unions to cover part of the financial needs of
       members when they retire.
18. ________________________________ is a profit-making organization that receives
    the deposits from individuals and corporations in the form of checking and savings
    accounts and uses some of the funds to make loans.
19. _________ is an independent agency of the US government that insures bank deposits.
20. ________________________________ is the buying and selling of US government
    securities by the Fed with the goal of regulating the money supply.
21. ______________ includes everything in M1 plus money that takes more time to raise
    such as savings accounts, money in money market accounts, mutual funds and
    certificates of deposit.
22. ________________________________ is the technical name for a checking account
    from which money can be withdrawn anytime on demand at any time by the owner.
23. ________________________________ assists the smooth flow of money among
24. ________________________, also known as the International Bank for Reconstruction
    and Development, is primarily responsible for financing economic development.
25. _________________ money supply is money that is quickly and easily raised, such as
    currency, checks, and traveler’s checks.
26. _____________________________ is and electronic funds transfer tool that is a
    combination credit card, debit card, phone card and more.

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