Chapter 2 Vocabulary
Development of U.S. Banking Chapter 3 Vocabulary
Terms
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- Bank Run
- When many people try to withdraw their money at once.
- Member Bank
- Any bank that is part of the Federal Reserve Bank.
- Discount Rate
- The intreset rate that the Federal Reserve sets and charges for loans to member banks.
- Great Depression
- The worst and longest economic cisis in the history of the Western industrialized nations.
- Margin
- Stocks bought for a fraction of their price, then resold at a profit, without the fill purchase price of the stock ever having been paid.
- Federal Open Market Committee (FOMC)
- The committee that makes discounts reate decisions.
- Federal Deposit Insurance Corporatin (FDIC)
- A corporations established by the Federal government which guarantees deposits against bank failures ip to specified limits, currently$100,000.
- Inflation
- A collective rise in the supy of money, incomes, and prices.
- Currency
- All media of exchange circulating in a country, uncluding coins as well as paper money and crefit instruments, such as bonds,checks, and even some types of loans papers.
- District Reserve Bank
- A bank that carries out banking functions for government offices in their areas, examines member banks in the district, decides whether to loan bank funds, recomemnds interest rates, and implements policy decisions of the Board of Governors.
- CAMELS
- A system that bank examiners use to evaluate six criteria of safety and soundness.