Any object
that is portable, divisible, durable, and stable and that serves
as a medium of exchange, a store of value, and a unit of
account.
A measure of
the money supply that includes only the most liquid (spendable)
forms of money: currency, demand deposits, and other checkable
deposits.
Paper money
and metal coins issued by the government.
An order
instructing a bank to pay a given sum to specified person or
firm.
Funds
deposited in bank accounts that may be withdrawn at any time
without notice.
A measure of
the supply that includes all the components of M&- I plus
the forms of money that cannot be spent directly but are easily
converted into spendable form: time deposits, money market
mutual funds, and savings deposits.
Funds
deposited in banks that cannot be withdrawn without notice and
against which checks cannot be written.
A form of
investment in which a nonbank institution pools the assets of
many investors to buy a collection of short&-term, low&-risk
financial securities. Ownership of and profits or losses from
the sale of these securities are shared among the investors in
the fund.
A form of
investment in which a bank or other depository institution pools
the assets of depositors to buy a collection of short&-term,
low&-risk financial securities. Ownership of and profits or
losses from the sale of these
securities are shared among the depositors in the
account.
A federally
chartered or state&-chartered company that accepts deposits
and uses them to make loans and thus to earn profits.
A commercial
bank that is chartered by an individual state but not by the
federal government.
A commercial
bank that is chartered by the federal government and thus is a
part of the Federal Reserve System.
The interest
rate available to a bank's best (most credit worthy) customers.
A company that
accepts deposits and makes loans primarily for home mortgages.
A bank whose
depositors are also its owners and therefore share in any of its
profits.
An institution
that accepts deposits only from and makes loans only to its
members. Usually, employment at a particular company is
necessary to gain membership in the credit union.
A pool of
funds managed to provide retirement income for its members.
Companies that
collect a large pool of funds from the premiums they charge for
their insurance coverage and then invest these funds in stocks
real estate, and other assets.
Companies that
specialize in making loans to businesses and consumers.
Companies that
buy and sell stocks and bonds on stock exchanges for investors.
Financial
intermediaries that match buyers and sellers of newly issued
securities.
Tax&-deferred
pension funds that wage earners and their spouses can set up to
supplement any other retirement funds they may have.
Tax&-deferred
pension plans for self employed people.
Services in
which a commercial bank manages an individual's investments,
payments, or estate in return for a fee.
A written
promise by a bank, issued on behalf of a buyer, to pay a
designated firm a certain amount of money if specified
conditions are met.
A written
promise by a bank issued on behalf of a buyer, to pay a
designated firm a certain amount by a particular date.
Electronic
machines that allow customers to withdraw money, make deposits,
check balances and transfer funds between their accounts 24
hours a day, seven days a week
The
communication of financial information to transfer funds over
wire, table, or microwave.
The Federal
agency that guarantees the safety of all deposits up to $100,000
in the banks and savings associations it insures. Depositors who
lose their money in bank failures are reimbursed up to that
amount through the FDIC's Bank Insurance Fund (BIF).
The federal
agency that regulates the state&-chartered and federal
thrift institutions belonging to the Savings Association
Insurance Fund, which insures savings and loan associations and
mutual savings banks.
The government
agency set up to resolve all troubled thrift cases from January
1989 to August 199 Under the FDIC's supervision, the RTC manages
thrifts that are placed in receivership, approves mergers
between failed thrifts
and healthy institutions, liquidates other troubled thrifts, and
disposes of assets obtained by the government from failed
companies.
The central
bank of the United States; it acts as the government's bank and
the bankers' bank, and controls the nation's money supply.
The total
amount of checks that have been written but not yet cleared
through the Federal Reserve.
The policies
instituted by the Federal Reserve System to manage the nation's
money supply and interest rates.
The percentage
of its deposits that a bank must hold in cash or on deposit with
a Federal Reserve Bank.
Any reserves
held by a bank in excess of its reserve requirement.
The interest
rate at which member banks can borrow money from their Federal
Reserve District Bank.
The Fed's
sales and purchases of securities in the open market.
The Fed's
authority to set margin requirements for consumer purchases of
stocks and to set credit rules for certain other types of
consumer purchases.
A plastic card
that allows an individual to transfer money from one account to
another.
An electronic
device in use in some stores that allows customers to pay for
their purchases with debit cards.
A nonbank firm
that offers a broad array of financial services.
