COMM 180 - Chapter 20
Flashcards of the terms for Final (Test 3) in Commerce 180, Spring 2008, UVA...
Terms
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- smart card
- An electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license, and more.
- M-2
- Money included in M-1 plus money that may take a little more time to obtain (savings accounts, money market accounts, mutual funds, CDs, etc).
- letter of credit
- A promise by the bank to pay the seller is a given amount if certain conditions are met.
- M-1
- Money that can be accessed quickly and easily (coins and paper money, checks, traveler's checks, etc).
- reserve requirement
- A percentage of commercial banks' checking and savings accounts that must be physically kept in the bank.
- debit card
- An electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account.
- Savings Association Insurance Fund (SAIF)
- The part of the FDIC that insures holders of accounts in savings and loan associations.
- certificate of deposit (CD)
- A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity date.
- pension funds
- Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire.
- electronic check conversion (ECC)
- An electronic funds trasnfer 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.
- Federal Deposit Insurance Corporation (FDIC)
- An independent agency of the U.S. government that insures bank depositors.
- demand deposit
- The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor.
- open-market operations
- The buying and selling of US government bonds by the Fed with the goal of regulating the money supply.
- International Monetary Fund (IMF)
- Organization that assists the smooth flow of money among nations.
- credit unions
- Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.
- nonbanks
- Financial organizations that accept no deposits but ofer many of the services provided by regular banks (pension funds, insurance companies, GE financial, etc).
- commercial bank
- A profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans.
- time deposit
- The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit.
- money
- Anything that people generally accept as payment for goods and services.
- electronic funds transfer (EFT) system
- A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks.
- discount rate
- The interest rate that the Fed charges for loan to member banks.
- World Bank
- The bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development.
- barter
- The trading of goods and services for other goods and services directly.
- saving and loan association (S&L)
- A financial institution that accepts both savings and checking deposits and provides home mortgage loans.
- banker's acceptance
- A promise that the bank will pay some specified amount at a particular time.