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 services. 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 nations. 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.