| A | B |
|---|
| Money | A standard of value and a means of exchange or payment |
| Monetary system | A system in which goods and services are directly exchanged using money |
| financial institution | A firm that manages money |
| bank account | A record of how much money a customer has deposited into or withdrawn from a bank |
| deposit | The money put into a bank account |
| Withdrawal | The amount of money taken out of a bank account |
| Interest | A fee charged for the use of money |
| Electronic fund transfer | Allows money to be transferred from one bank account to another through a network of computers. |
| direct deposit | The electronic transfer of a payment directly from a payer's bank account to the account of the person being paid |
| collateral | Property or goods pledged by a borrower to use as security against a loan if the loan is not repaid |
| Mortgage | An agreement in which a borrower gives a lender the right to take property if a loan is not repaid |
| Safe-deposit box | A secure box in a bank's vault for the safe storage of a customer's valuables |
| commercial banks | Banks that offer the entire range of banking services; also called full-service banks |
| savings and loan associations | Financial institutions that hold customers' funds in interest-bearing accounts and invest mainly in mortgage loans |
| credit unions | Not-for-profit banks set up by organizations for their customers to use |
| mortgage companies | Financial institutions that provide loans specifically for buying a home or business |
| finance companies | Financial insitutions that offer short-term loans to businesses and consumers, but a much higher interest rates than banks charge |
| insurance companies | Financial institutions that provide protection against problems such as fire and theft |
| Federal Reserve System | The central bank of the United States |
| reserves | Funds set aside for emergencies, such as a rush of withdrawals at a bank |
