| A | B |
|---|
| Safety-Deposit box | something to place valuables in at the bank |
| interest | the money banks pay to depositors for use of their funds |
| deposit | sums of money placed in accounts in the bank |
| Federal Reserve System | Responsible for controlling the amount of money in circulation |
| EFT | The process of moving money from one account to another through the use of a computer |
| monetary system | goods and services are indirectly exchanged through this medium |
| money | anything accepted as a standard form of payment |
| withdrawal | taking money out of the bank |
| bank account | records how much money a customers has put into or taken out of a bank |
| financial institution | an organization for managing money |
| collateral | somethign of value you put up for a loan |
| mortgage | a deed that state if you can't pay back your house loan the lender has the right to take back the house |
| the functions of money | medium of exchange, standard of value, store of value |
| characteristics of money (5) | scarce, accepted, divisible, portable, durable |
| time deposit | a savings account |
| demand deposit | a checking account |
| Commercial bank | a bank that is in business to make a profit |
| Credit Union | a non-profit organization to help its members |
| duties of the FED | clearing checks, the governments bank, supervises member banks, regulates the supply of money in the economy |
