chapter 15 Flashcards
What is federal Reserve?
Federal Reserve System is the central bank of the United States
Define Financial Exchange
the process of transferring money from one individual or organization to another
What is a Credit Card?
a plastic card that allows the holder to make credit purchases up to an authorized amount
What’s EFT?
Electronic funds transfer is the movement of money over an online network from one financial institution to another
Define Unit of Value
Money is a common measure of the worth or price of a good or service
How does store value work?
Money can be saved and used at a later date
What is Government bond?
is a security that pays interest over terms of 10 to 30 years
What is a treasury bill?
a security that matures in a year or less
What is a Treasury Note?
a security that pays interest over terms ranging from two to 10 years
What’s a banknote?
a document guaranteeing payment of a specific amount of money; payer named on document
Define Divisible:
Divide money into smaller units
Define Monetary Policy:
is action taken to manage supply of money and interest rates
What is Bank issued debit card?
It allows customers to pay for purchases directly from their checking account
What do Legal responsibilities include?
Legal responsibilities of financial exchange include privacy, disclosure, fraud, consumer rights, and interest rates
Define Financial institution:
Financial institution is any organization that provides services related to money
