Banking and Financial Institutions

action taken by a central bank in an attempt to boost the overall supply of money during times of slow growth

amount of money held to meet the demands of daily transactions and withdrawals

ability of a bank to meet its financial obligations for the long term

network of institutions that provide financial services to individuals and businesses

seven-member governing body that oversees the Federal Reserve banks and helps with implementation of monetary policy in the United States

financial instrument representing a loan made to a governmental or corporate body by some entity that requires repayment of the initial loan price plus interest on a fixed schedule

institution that manages a country's or state's money supply, interest rates, and currency

private institution primarily concerned with maximizing its revenue through holding deposits and making loans and investments with a portion of those deposits

financial institution legally allowed to accept monetary deposits from the public and loan these funds

central bank of the European Union countries that have adopted the euro as their currency

monies held by banks and financial institutions above and beyond what is required by internal controls, regulators, and creditors

interest rate charged to commercial banks and other depository institutions on loans received from the Federal Reserve

interest rate at which banks and credit unions lend reserve balances to other banks and credit unions overnight

private corporation founded by Congress whose mission is to promote stable and affordable housing markets by purchasing mortgages

government-sponsored corporation that buys qualified mortgage loans from financial institutions, issues securities against the mortgages, and sells them as funding sources for home mortgages

central bank of the United States in charge of setting monetary policy for the nation

legislation that prohibited commercial banks from engaging in the investment business. This was passed because of the failure of nearly 5,000 banks during the Great Depression.

federally owned corporation promoting homeownership by providing lower-priced mortgages in pooled securities, given timely payments to the loan providers

legislation that repealed and replaced the Glass‐Steagall Act, allowing commercial banks to again participate in investment banking activities. Legislation also requires that financial institutions explain fully their information-sharing practices to their customers.

measure of the ability to convert assets to cash with ease, usually because of a financial obligation

actions of the central bank, current board, or other regulatory committee that determine the size and rate of growth of the supply of money, which in turn affects interest rates and inflation

unrestricted market with free access to enter, buy, and sell

state in which prices do not change much over time and there is little inflation or deflation

regulation requiring lending institutions to publish important credit terms, abstain from unfair and misleading practices, and respond to their customers

amount of money banks must hold in reserve versus deposits made by their customers