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BA 201
Chapter 15
35
Business
Undergraduate 2
12/08/2010

Additional Business Flashcards

 


 

Cards

Term
Money
Definition
object that is portable, divisible, durable, and stable, and that serves as a medium of exchange, a store of value, and a measure of worth
Term
M-1
Definition
measure of the money supply that includes only the most liquid forms of money
Term
Currency (Cash)
Definition
government-issued paper money and metal coins
Term
Check
Definition
demand deposit order instructing a bank to pay a given sum to a specified payee
Term
Checking Account (Demand Deposit)
Definition
bank account funds, owned by the depositor, that may be withdrawn at any time by check or cash
Term
M-2
Definition
measure of the money supply that includes all the components of M-1 plus the forms of money that can be easily converted into spendable forms
Term
Time Deposit
Definition
bank funds that have a fixed term of time to maturity and cannot be withdrawn earlier or transferred by check
Term
Money Market Mutual Fund
Definition
fund of short-term, low-risk financial securities purchased with the pooled assets of investor-owners
Term
Commercial Bank
Definition
company that accepts deposits that it uses to make loans, earns profits, pay interest to depositors, and pay dividends to owners
Term
Savings And Loan Association (S&L)
Definition
financial institution accepting deposits and making loans primarily for home mortgages
Term
Mutual Savings Bank
Definition
financial institution whose depositors are owners sharing in its profits
Term
Credit Union
Definition
nonprofit, cooperative financial institution owned and run by its members, usually employees of a particular organization
Term
Pension Fund
Definition
nondeposit pool of funds managed to provide retirement income for its members
Term
Insurance Company
Definition
nondeposit institution that invests funds collected as premiums charged for insurance coverage
Term
Finance Company
Definition
nondeposit institution that specializes in making loans to businesses and consumers
Term
Securities Investment Dealer (Broker)
Definition
financial institution that buys and sells stocks and bonds both for investors and for its own accounts
Term
Prime Rate
Definition
interest rate available to a bank's most creditworthy customers
Term
Individual Retirement Account (IRA)
Definition
tax-deferred pension fund that wage earners set up to supplement retirement funds
Term
Trust Services
Definition
management by a bank of an estate, investments, or other assets on behalf of an individual
Term
Letter of Credit
Definition
bank promise, issued for a buyer, to pay a designated firm a certain amount of money if specified conditions are met
Term
Banker's Acceptance
Definition
bank promise, issued for a buyer, to pay a designated firm a specified amount at a future date
Term
Electronic Funds Transfer (EFT)
Definition
communication of fund-transfer information over wire, cable, or microwave
Term
Automated Teller Machine (ATM)
Definition
electronic machine that allows bank customers to conduct account-related activities 24 hours a day, 7 days a week
Term
Federal Deposit Insurance Corporation (FDIC)
Definition
federal agency that guarantees the safety of deposits up to $100,000 in the financial institutions that it insures
Term
Federal Reserve System (The Fed)
Definition
central bank of the United States, which acts as the government's bank, serves member commercial banks, and controls the nation's money supply
Term
Monetary Policy
Definition
management of the nation's economic growth by managing the money supply and interest rates
Term
Reserve Requirement
Definition
percentage of its deposits that a bank must hold in cash or on deposit with the Fed
Term
Discount Rate
Definition
interest rate at which member banks can borrow money from the Fed
Term
Federal Funds Rate (Key Rate)
Definition
interest rate at which commercial banks end reserves to each other, usually overnight
Term
Open-Market Operations
Definition
the Fed's sale and purchase of securities in the open market
Term
Debit Card
Definition
plastic card that allows an individual to transfer money between accounts
Term
Point-of-Sale (POS) Terminal
Definition
electronic device that transfers funds from the customer's bank account to pay for retail purchases
Term
Smart Card
Definition
credit-card-sized plastic card with an embedded computer chip that can be programmed with electronic money
Term
World Bank
Definition
UN agency that provides a limited scope of financial services, such as funding improvements in underdeveloped countries
Term
International Monetary Fund (IMF)
Definition
UN agency consisting of about 150 nations that have combined resources to promote stable exchange rates, provide temporary short-term loans, and serve other purposes
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