Chapter 4 Vocab Flashcards
Automatic teller machine (ATM)
a machine where you can make an electronic deposit
Bank draft
authorize someone to take money out of your bank account automatically to satisfy some financial obligation
Cashier’s check
a type a check that is written to a specific payee but charged against the bank instead of your account
Check
directs a bank to deduct money from your checking account to make a payment
Check register
keeps a record of your deposits, electronic transfers, and the checks you have written
Checking account
monetary account that allows the holder to write checks against money that has been deposited into it
Credit Union
functions similar to a bank, but has nonprofit status and is owned by its members
Debit card
enables you to withdraw cash from your account at ATMs, or pay directly for goods or services at businesses
Depository institutions
financial institutions that provide checking accounts, savings accounts, and loans
Discount rate
the Fed changes the interest rate it charges to the banks when it loans them money
Electronic funds transfer
when you authorize someone to access your bank account for payment or deposit
Federal Deposit Insurance Corporation (FDIC)
protects your money in case of bank failure
Federal Reserve System
serves as the central bank of the United States, and regulates banks
Fiat Money
has value not because the coins and bills have some value in their own right, but because the government says it has value
Inflation
sustained increase in level of prices
