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Unformatted text preview: Credit unions Financial cooperative organizations of individuals with a common affiliation (such as an employer or a labor union). They accept deposits, including checkable deposits, pay interest (or dividends) on them out of earnings, and lend funds primarily to members. Discount rate The interest rate the Federal Reserve charges banking institutions for borrowing funds. Federal Deposit Insurance Corporation (FDIC) A federally chartered corporation that insures the deposits held by commercial banks, savings and loans, and credit unions. Federal funds market A loanable funds market in which banks seeking additional reserves borrow short-term funds (generally for seven days or less) from banks with excess reserves. The interest rate in this market is called the federal funds rate. Federal Open Market Committee (FOMC) A committee of the Federal Reserve system that establishes Fed policy with regard to the buying and selling of government securitiesthe primary mechanism used to control the money supply. It is composed of the seven members of the Board of securitiesthe primary mechanism used to control the money supply....
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- Fall '08