Question: Smart card

Answer: A combination of a credit card, debit card, phone card, driver's license, and more.

Question: Debit card

Answer: Serves the same function as a check; it withdrawals funds from a checking account.

Question: Nonbanks

Answer: Financial institutions that accept no deposits, but offer many of the services provided by regular banks.

Question: Demand Deoposit

Answer: The technical name for a checking account the money is available on demand from the depositor

Question: Commercial bank

Answer: A profit seeking organization that receives deposits from individual and corporations in the form of checking and saving accounts and uses those funds to make loansYou have depositors and borrowers

Question: Credit unions

Answer: Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.exempt from federal income taxes

Question: Money

Answer: Anything people generally accept as payment for goods and services

Question: Barter

Answer: The direct trading of goods or series for other goods or services

Question: Standards for useful forms of Money

Answer: Portability, divisibility, stability, durability, an uniqueness

Question: Money supply

Answer: The amount of money the Federal Reserve Makes available for people, The money supply is referred to as

Question: M1

Answer: money that can be accessed quickly (coins, paper money, travelers check

Question: M2

Answer: M1 + money that may take a tittle time to obtain ( saving account mutual fund)

Question: M3

Answer: M2+ big deposits like institutional money

Question: Falling dollar Value

Answer: The amount of goods and services you can but with a dollar Decrease

Question: What makes the dollar fall or rise is the position of the U.S. economy relative to other global economies.

Answer: Since the United States abandoned the gold standard, the U.S. dollar has depreciated by approximately 90 percent.

Question: The impact of a falling dollar

Answer: Overseas demand for U.S products riseA favorable exchange rate for U.S companies and increased profits in foreign marketsTourism increases.

Question: the long term implications of a falling dollar

Answer: Higher interest rates on government and consumer debt.Higher inflation due to a rise in the price of imports, and commodity prices increase since most are priced in terms of U.S. dollars.

Question: Five major parts of the Federal Reserve system

Answer: The board of GovernorsThe federal open Market commitee12 federal banks 2 advisory councilsThe member banks of the system

Question: The Fed uses three basic tools: when managing the money supply

Answer: ...

Question: Reserve Requirement

Answer: A percentage of commercial banks' checking and savings accounts they must keep in the bank or in non-interest-bearing deposits at the local Federal Reserve district bank.that can increase or decease the reserve

Question: Open-Market Operations

Answer: The buying and selling of government bonds.

Question: Discount Rate

Answer: The interest rate the Fed charges for loans to member banks.

Question: Time deposit

Answer: A savings account: a bank can require a prior notice before you make a withdraw

Question: Certificate of Deposite

Answer: A saving account that earns interest, to be delivered on the certificate's maturity date

Question: non-banks indlude

Answer: Life insurance companies, pension funds, brokerage firms, comerical finance companies and corporate financial services

Question: Why did the U.S. need a Federal Reserve Bank?

Answer: The Federal Reserve emerged after the banking crisis of 1907 and was organized originally to be a lender of last resort.

Question: (FDIC

Answer: -- An independent agency of the U.S. government that insures bank deposits up to $250,000.

Question: (SAIF

Answer: -- Insures holders of accounts in savings and loan associations.

Question: (NCUA

Answer: Provides up to $250,000 coverage per individual depositor per institution.

Question: Letter of Credit

Answer: A promise by the bank to pay the seller a given amount if certain conditions are met.

Question: Banker's Acceptance

Answer: A promise the bank will pay some specified amount at a particular time

Question: World Bank

Answer: Lends most of its money to less-developed nations to improve their productivity and help raise standards of living and quality of life.

Question: International Monetary Fund (IMF)

Answer: Fosters cooperative monetary policies that stabilize the exchange of one national currency for another. About 185 countries are a part of the IMF.

Question: What are some of the causes for the banking crisis beginning in 2008?

Answer: After the internet bubble of the late 1990s, the Federal Reserve lowered interest rates creating a situation in which mortgage rates were low thus fueling a housing boom. Banks relaxed their underwriting standards and created mortgage-backed securities and sold them to organizations throughout the world. The government did not regulate these transactions well and banks collapsed as housing values fell and individuals defaulted on their loans.