Chapter 24: Money and Banking Study
Set Questions And Actual Answers.
coin - Answer metallic form of money such as pennies, nickels, and dimes
currency - Answer both coins and paper money
commercial bank - Answer a financial institution that offers full banking services to individuals and
businesses
savings and loan association (S and L) - Answer financial institutions that traditionally loaned money to
people buying homes
credit union - Answer nonprofit service cooperative that accepts deposits, makes loans, and provides
other financial services
central bank - Answer an institution that lends money to other banks; also, the place where the
government does its banking business
Federal Open Market Committee (FOMC) - Answer the most powerful committee of the Fed, because it
makes the decisions that affect the economy as a whole by manipulating the money supply
monetary policy - Answer policy that involves changing the rate of growth of the money supply in
circulation in order to affect the cost and availability of credit
discount rate - Answer the interest rate the Fed charges on its loans
reserve - Answer a certain percentage of deposits that banks have to set aside as cash in their own
vaults or as deposits in their Federal Reserve district bank
open market operations - Answer purchase or sale of U.S. government bonds and Treasury bills
, checking account - Answer an account in which deposited money can be withdrawn at any time by
writing a check
savings account - Answer an account in which customers receive interest based on how much money
they have deposited
certificate of deposit (CD) - Answer timed deposit that states the amount of the deposit, maturity, and
rate of interest being paid
obvious - Answer easily found, seen, or understood
medium - Answer a means of doing
manipulate - Answer to handle with skill
contract - Answer to become smaller
initial - Answer the very first
principal - Answer the most important
behalf - Answer in the interest of
barter - Answer to trade a good or service for another good or service
coin - Answer metallic form of money, such as a penny
currency - Answer money, both coins and paper bills
Set Questions And Actual Answers.
coin - Answer metallic form of money such as pennies, nickels, and dimes
currency - Answer both coins and paper money
commercial bank - Answer a financial institution that offers full banking services to individuals and
businesses
savings and loan association (S and L) - Answer financial institutions that traditionally loaned money to
people buying homes
credit union - Answer nonprofit service cooperative that accepts deposits, makes loans, and provides
other financial services
central bank - Answer an institution that lends money to other banks; also, the place where the
government does its banking business
Federal Open Market Committee (FOMC) - Answer the most powerful committee of the Fed, because it
makes the decisions that affect the economy as a whole by manipulating the money supply
monetary policy - Answer policy that involves changing the rate of growth of the money supply in
circulation in order to affect the cost and availability of credit
discount rate - Answer the interest rate the Fed charges on its loans
reserve - Answer a certain percentage of deposits that banks have to set aside as cash in their own
vaults or as deposits in their Federal Reserve district bank
open market operations - Answer purchase or sale of U.S. government bonds and Treasury bills
, checking account - Answer an account in which deposited money can be withdrawn at any time by
writing a check
savings account - Answer an account in which customers receive interest based on how much money
they have deposited
certificate of deposit (CD) - Answer timed deposit that states the amount of the deposit, maturity, and
rate of interest being paid
obvious - Answer easily found, seen, or understood
medium - Answer a means of doing
manipulate - Answer to handle with skill
contract - Answer to become smaller
initial - Answer the very first
principal - Answer the most important
behalf - Answer in the interest of
barter - Answer to trade a good or service for another good or service
coin - Answer metallic form of money, such as a penny
currency - Answer money, both coins and paper bills
