Money and Financial Institutions Quiz

Anything that people generally accept as payment for goods and services

The direct trading of goods or services for other goods or services

The amount of money the Federal Reserve Bank makes available for people to buy goods and services

Money that can be accessed quickly and easily (coins and paper money, checks, traveler's checks, etc.)

Money included in M-1 plus money that may take a little more time to obtain (savings accounts, money market accounts, mutual funds, certificates of deposit, etc.)

M-2 plus big deposits like institutional money market funds

The rise in price

Prices go down because there is an oversupply of goods and services compared to the money available to buy them; decrease in prices

The amount of goods and services you can buy with a dollar in global market decreases

The amount of goods and services you can buy with a dollar goes up

The board of governors

The Federal Open Market Committee (FOMC)

12 Federal Reserve banks;

Three advisory councils

The member banks of the system

A percentage of commercial banks' checking and savings accounts that must be physically kept in the bank

The buying and selling of U.S. government bonds by the Fed with the goal of regulating the money supply

The interest rate that the Fed charges for loans to member banks

A profit-seeking organization that receives deposits form individuals and corporations in the form of checking and saving accounts and then uses some of these funds to make loans.

Make loans from the deposits of customers and are equally responsible to their depositors and borrowers

The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor

The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit

A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity date.

A financial institution that accepts both savings and checking deposits and provides home mortgage loans, often called thrifts

Nonprofit, member-owned financial cooperative that offers the full variety of banking services to its members

Financial organizations that accept no deposits but offer many of the services provided by regular banks ) pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses)

Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire

An independent agency of the U.S. government that insures bank deposits

The part of the FDIC that insures holders of accounts in savings and loan associations

A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks

An electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account

An electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license card, and more

A promise that the bank will pay some specified amount at a particular time

Organization that assists the smooth flow of money among nations

The organization in charge of money in the United States

Some local governments issues their own currency

The barter system was common

It made business and trade more difficult

Consists of commercial banks, savings and loan associations, credit unions, and nonbank that offer financial services

of the Federal Reserve enables banks to settle demand deposits between member banks