| A | B |
|---|
| Board of Governors | The seven member group that supervises and controls the money and banking system of the U.S. (The Federal Reserve Board) |
| Checkable deposits | Any deposit in a commercial bank or thrift institution in which a check may be written |
| commercial banks | a firm that engages in the business of banking |
| electronic payments | purchases made by transferring funds electronically. |
| Federal Open Market Committee | The 12 member group that determines the purchase and sale policies of the Federal Reserve Banks in the market for U.S. government securities |
| Federal Reserve Banks | The 12 banks chartered by the U.S. government to control the money supply and perform other functions |
| Federal Reserve Notes | Paper money issued by the Federal Reserve |
| Federal Reserve System | The U.S central bank consisting of the Board of Governors, 12 Federal Reserve Banks, which control the lending activity of the nation's banks and thrifts |
| financial services industry | A category of firms that provide financial services and products to help households and businesses earn interest, receive dividends, obtain capital gains, insure agains losses, and plan for retirement |
| legal tender | a designation of a nation's official currency |
| M1 | The most narrowly defined money supply, equal to currency in the hands of the public and the checkable deposits of commercial banks and thrifts |
| M2 | a more broadly defined money-supply. Equal to M1 plus checkable savings accounts (including money markets) small time deposits, and individual money market mutual fund balances |
| medium of exchange | any item sellers generally accept and buyers generally use to pay for a good or service |
| money market deposit account | bank and thrift provided interest bearing accounts that contain a variety of short-term securities with min. balance reqs and limits on the frequency of withdrawls |
| money market mutual fund | interst bearing accounts offered by investment companies, which pool depositor's funds for the purchase of short term securities. Depositors can write checks in minimum amounts or more against their accounts |
| MZM | a definition of the money supply that includes monetary balances immediately available at zero cost to households and businesses for making transactions. (M2 minus small time deposits plus money market mutual fund balances owned by businesses) |
| near monies | Financial assets which are not a medium of exchange but can be readily converted into money |
| savings account | a deposit in a commercial bank or thrift institution which interest payements are received, a component of M2 money supply |
| store of value | an asset set aside for future ues, one of the three functions of money |
| thrift institutions | a savings and loan association, mutual savings bank or credit union |
| time deposits | an interest earning deposit in a commercial bank or thrift institution that a depositor can withdraw without penalty after a specified time |
| unit of account | a standard unit in which prices can be stated and the value of goods and services can be compared; one of the three functions of money |
| Token Money | the intrinsic value of the metal used to produce a coin is less than the face value |
