Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Intro to Business > Chapter 15 > Flashcards

Chapter 15 Flashcards

1
Q

Money

A

anything that is accepted as payment for goods/services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Currency

A

cash held in the form of coins and paper money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Domestic Demand

A

influenced primarily by prices for goods and services, income levels, and the availability of alternate payment methods such as credit cards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Foreign Demand

A

influenced by the political and economic uncertainties associated with some foreign currencies, and recent estimates suggest that between one-half and two-thirds of the value of currency in circulation is held abroad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

BEP

A

Treasury’s Bureau of Engraving & Printing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Demand Deposits

A

consists of money kept in checking accounts that can be withdrawn by depositors on demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Time Deposits

A

deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

M1

A

used to describe the total amount of readily available money in the system and includes currency and demand deposits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

M2

A

included M1 money plus time deposits and other money that is not immediately accesible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Federal Reserve System (the Feds)

A

created in 1913, the central bank of the US

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Federal Open Market Committee (FOMC)

A

Fed policy-making body

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Open Market Operations

A

most frequent tool - involves the purchase or sale of US government bonds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Treasury bonds

A

long-term loans (5+yrs) made by businesses and individuals to the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Reserve Requirements

A

as part of the Feds, banks must hold some of their deposits in cash in their vaults or in an account at a district bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Discount Rates

A

the interest rate charged to member banks by the Feds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Selective Credit Control

A

setting rules on credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Consumer Credit Rules

A

establish the minimum down payment and maximum repayment periods for consumer loans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Margin Requirements

A

specify the minimum amount of cash an investor must put up to buy securities or investment certificates issued by corporations/governments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Float

A

allows the check writer to retain the funds until the check clears when the funds are actually withdrawn from its account

20
Q

Dodd-Frank Act

A

created an oversight council to monitor risks that affect the financial industry

21
Q

Financial Intermediation

A

process in which institutions accept savers’ deposits and invest them in financial products (loans) that expected to produce a return

22
Q

Households

A

suppliers of funds

23
Q

Businesses and Government

A

demander of funds

24
Q

Depository Financial Institutions (DFI)

A

accept deposits

25
Q

Commercial Banks (DFI)

A

a profit-oriented financial institution that accepts deposits, make business and consumer loans; privately-owned

26
Q

Bank Charter

A

an operating license

27
Q

National Banks (DFI)

A

chartered b the Comptroller of Currency, part of the US Treasury Department; must belong to the Feds and be insured by the FDIC

28
Q

State Banks (DFI)

A

chartered by the state in which they are based; not required to belong to the Feds

29
Q

Thrift Institutions

A

depository institution personally designed to encourage household saving and to make home mortgage loans

30
Q

Savings & Loans Association (S&Ls) (Thrift)

A

keep large %s of their assets in home mortgages

31
Q

Saving Banks (Thrift)

A

focus less on mortgage and more on stock and bond investments

32
Q

ACSI

A

American Consumer Satisfaction Index

33
Q

Credit Unions

A

not-for-profit, member-owned financial cooperative

34
Q

Non-Depository Financial Institutions (Non-DFI)

A

do not accept deposits but do provide certain banking services

35
Q

Insurance Company (Non-DFI)

A

major suppliers of funds

36
Q

Cat-Risk Businesses

A

forecast potential weather-related expenses for insurers through sophisticated computer modeling that analyzes historical meteorological data

37
Q

Pension Funds (Non-DFI)

A

large pools of money set aside for later use in retirement benefits to employees or member

38
Q

Brokerage Firm (Non-DFI)

A

buys and sells securities (bonds & stocks) for its clients and gives them related advice

39
Q

Finance Company (Non-DFI)

A

makes short-term loans for which the borrower puts up tangible assets as security

40
Q

Commercial Finance Loans

A

gives loans to promising new businesses with no track record and firms that can’t get more credit from a bank

41
Q

Consumer Finance Loans

A

loans to individuals, often to cover lease or purchase of large consumer goods

42
Q

Banking Act of 1933

A

empowered the Federal Reserve System to regulate banks and reform the bank system; created the FDIC

43
Q

Federal Saving and Loan Insurance Corporation (FSLIC)(1934)

A

formed to insure deposits at S&Ls; went bankrupt in the 1980s

44
Q

Deposit Insurance Funds (DIF)

A

provides deposit insurance to commercial banks and thrift institutions

45
Q

National Credit Union Share Insurance Fund

A

provides deposit insurance to credit unions

46
Q

Federal Deposit Insurance Corporation (FDIC)

A

independent, quasi-public corporation backed by the US government

47
Q

Conversational Commerce

A

interacting with customers via messaging and digital platforms

Intro to Business (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions