| A | B |
|---|
| medium of exchange | an agreed-upon system for measuring the value of goods and services. |
| financial intermediary | a bank is this for the safeguarding, transferring, exchanging, or lending of money. |
| Commercial banks | are the institutions commonly thought of as banks |
| Retail Banks | this and other thrift institutions such as mutual savings banks, savings and loans, and credit unions, developed to help individuals not served by commercial banks |
| Central banks | the government banks that manage, regulate, and protect both the money supply and the banks themselves. |
| merger | occurs when one or more banks join or acquire another bank or banks. |
| Ways of securing money | examples include: record keeping, identification, enforcement,transfer security, and sound business practices. |
| identity theft | occurs when someone achieves financial gain by using another person's personal information to unlawfully assume the identity of the other person. |
| creditworthy | a customer that has a good credit rating, sufficient collateral for loans, and an ongoing income source sufficient to make timely loan payments. |
| depositers | people who put money into banks |
| spread | the difference between what a bank pays in interest and what it receives in interest. Also known as net interest income |
| revenue | income |
| Pofit | net income |
| asset | anything of value |
| liquid asset | anything that can be readily exchanged, like cash |
| liability | cash obligation |
| Return on assets(ROA) | the ratio of net income to total assets |
| Return on equity(ROE) | measures how well a bank is using its equity |
| equity | represents net assets, or total assets, minus total liabilities |
| niche markets | targeting particular customers in defined locations or by particular services. |
| deregulation | loosening of government control |
| Automated Teller Machines | a machine that can perform almost any banking action |
| Smart Card | are credit, debit or other types of cards that have embedded microchips |
| payroll card | a card where banks can facilitate salary payments between employers and employees |
| online banking | allows customers to perform banking transactions from their home computers |
| mobile banking | customers can execute a variety of banking transactions with mobile phones |
| depository intermediaries | those that get funds from the public and use them to finance their business |
| non depository intermediaries | those that do not take or hold deposits |
| wholesale banks | commercial banks that specialize in business banking |
| thrift institutions | mutual savings banks and savings and loan associations are sometimes called this |
