Banking7 - loan money to other banks Federal reserve The...

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Banking Terms 100% Reserve Banking System - A system in which banks must keep all deposits on hand and ready for withdrawal. Assets - Cash, stocks, bonds, and physical goods that are stores of wealth and value. Balance Sheet - An accounting tool where assets and liabilities are compared side by side. Borrowers - Individuals who take out loans from banks. Currency - Money, either fiat or commodity, that is commonly used in an economy. Demand Deposits - Deposits made by in banks that can be withdrawn at any time--that is, on demand. Deposits - Money given to banks for safekeeping and to earn interest. Federal Deposit Insurance Corporation - A corporation that insures individual bank accounts up to $100,000 to ensure that the public is confident in the banking system. Federal Funds Interest Rate - The discount interest rate at which the branch banks of the Fed
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Unformatted text preview: loan money to other banks. Federal reserve - The federal group that controls the money supply though monetary policy and fiscal policy. Federal Reserve Banks - Branches of the Fed that serve as banks for non-government controlled banks by accepting deposits, giving withdrawals, and making loans as needed. Fiat Money - Money that has no intrinsic value but that is instead only valuable because it is backed and regulated by a governing body. Financial Intermediary - An entity, like a bank, that works between savers and borrowers by accepting deposits and making loans. Fiscal Policy - Operations by the Fed that affect the money supply including manipulation of the federal funds interest rate and the reserve requirement. Fractional Reserve Banking System - A banking system wherein less than 100% of the deposits are required to be held as reserves....
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