| A | B |
|---|
| money | a standard of value and a means of exchange or payment |
| monetary system | the use by modern society of coins, currency, checks, and debit cards make up this system |
| financial institution | a firm that manages money |
| bank account | record of the amount of money a customer has deposited into or withdrawn from a bank |
| deposit | money put in a bank account |
| withdrawal | money taken out of a bank account |
| interest | rate that the bank pays customers for keeping their money |
| electronic fund transfer | money transferred from one bank account to another through a network of computers |
| direct deposit | the electronic transfer of a payment directly from the payer's bank account to that of the party being paid |
| collateral | Property or goods pledged by a borrower to use as security against a loan if it is not repaid. |
| mortgage | an agreement in which a borrower gives a lender the right to take the property if the loan is not repaid. |
| safe-deposit box | a secure box in a bank's vault used for storage of a customer's valuables. |
| commercial banks | offer a range of banking services and authorized to conduct business through a charter, or license, that is granted by the federal or state government |
| savings and loan associations | financial institution that holds customer funds in interest bearing accounts and invests mainly through mortgage loans. |
| credit unions | not-for-profit banks set up by organizations for their customers to use |
| mortgage companies | provide loans specifically for buying a home or business |
| finance companies | offer short-term loans to businesses and consumers, but at much higher interest rates than banks charge |
| insurance companies | provide protection against problems/risk, but also offer loans to businesses and consumers |
| Federal Reserve System | the central bank of the United States |
| reserves | Funds set aside for emergencies, such as a rush of withdrawals. |
