1. Civics and Economics Vocabulary
Chapter 24 - Section One
Coin- are metallic forms of money
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Currency- includes both coins and paper money
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Commercial Bank- financial institutions that offer full banking services to individuals and
businesses
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Savings and Loan Association- financial institutions that traditionally loaned money to
people buying homes
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Credit Union- work on a not-for-profit basis
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Chapter 24 - Section Two
Central Bank- Federal Reserve System
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Federal Open Market Committee- makes the decisions that affect the economy as a
whole by manipulating, or controlling, the money supply
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Monetary Policy- the controlling of the supply of money and the cost of borrowing
money
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Discount Rate- the rate the Fed charges member banks for loans
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Reserve- banks must keep a certain percentage of their money in Federal Reserve
Banks as a reserve against their deposits
Tara Pawlyk Friday, May 17, 2013 8:21:31 AM ET 04:0c:ce:d3:10:88
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Open Market Operations- the purchase or sale of U.S. government bonds and Treasury
bills
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Chapter 24 - Section Three
Checking Account- allow customers to write checks or to use check or debit cards
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Savings Accounts- banks pay interest to customers based on how much money they
have deposited
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Certificate of Deposit- require a saver to deposit his or her funds for a certain period of
time
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Tara Pawlyk Friday, May 17, 2013 8:21:31 AM ET 04:0c:ce:d3:10:88