| A | B |
|---|
| balance sheet | bank statement of assets and liabilities |
| certificate of deposit | investor's loan to a bank |
| holding company | corporation that owns one or more banks |
| Regulation Z | requires truth-in-lending disclosure |
| discount rate | Fed interest rate on loans to banks |
| net worth | the excess of assets over liabilities |
| liquid | bonds that can easily be converted to cash |
| monetize the debt | create extra money to offset deficit spending |
| vault cash | counts as legal reserves |
| easy money policy | low interest rates and ample money supply |
| member banks | banks that belong to the Federal Resrve System |
| M2 | conforms to money's role as a store of value |
| M1 | represents the transactional components of the money supply |
| truth-in-lending | requires full disclosure by sellers to credit buyers |
| moral suasion | use of persuasion by the Fed to control the money supply |
| margin requirement | minimum down payment for purchase of securities |
| legal reserves | coins, currency, and depositis required to fulfill the Fed's reserve requirement |
| excess reserves | bank money available for loans |
| open market operations | buying and selling of government securities in financial markets |
| quantity theory of money | changes in the supply of moeny affect the general level of prices |
| specie | money in the form of gold or silver coins |
| FIRREA | most significant financial legislation passed since the Depression |
| monetary standard | designed to keep the value of money supply |
| bank holiday | a closing of all banks in the nation |
| inconvertible fiat | money cannot be converted into gold or silver |
| money | any substance used as a medium of exchange |
| wampum | currency of the Narraganset Native Americans |
| store of value | one of the functions of money |
| thrift institutions | savings banks and savings institutions |
| DIDMCA | deregulation legislation reducing differences between competing finanacial institutions |
| greenback | legal tender used during the Civil War |
| dual banking system | bank charters may originate with the state or federal government |
| commodity money | money that has an alternative use |
| bullion | ingots or bars of precious metals |
| barter economy | a moneyless economy |
| demand deposit accounts | issued by commercial banks |
| share drafts | chekcs issued by credit unions |
| wildcat banks | described banks that over-printed currencies |
| fiat money | money backed by government decree |
| deregulation | the relaxing of government restrictions on business |
