1. Unit 13 Vocabulary

2. Coins Coins are metallic forms of money such as pennies, nickels, and dimes.

3. Currency Currency includes both coins and paper money.

4. Commercial Banks Commercial banks are the most important part of the financial system because of their large areas of influence. Example: BB&T, RBC, Suntrust Commercial banks are institutions that offer full banking services to individuals and businesses. They are the places that offer checking accounts and debit cards, saving accounts, and certificates of deposits (CDs) to their comsumers.

5. Savings and Loans Savings and loan associations are institutions that traditionally loan money to people buying homes. -Today, S&Ls perform many of the activities that commercial banks do

6. Credit Unions Credit unions are institutions that are open only to members of the group and work on a not-for-profit basis. -They are often sponsored by businesses, labor unions, or government institutions.

7. FDIC The most important insurance agency is the Federal Deposit Insurance Corporation (FDIC). -It insures individual accounts in financial institutions for up to $100,000.

8. Monetary Policy Government’s policy on controlling the money supply and the cost of borrowing money.

10. Reserve This is how much money the federal reserve can require banks to keep.

11. Open Market Operations These are bonds and bills that the Fed can buy. If the Fed buys bonds from investors, it puts more cash in investor's hands, increasing the money supply.

12. Checking And Savings Accounts Checking accounts are accounts that allow customers to write checks or use check cards . Savings accounts where people save money. These are accounts that pay interest to customers based on the amount they have deposited

13. Certificates of Deposits Accounts where customers leave the money in for an extended amount of time for increased interest than a savings account

18. Advantage-creation of universal banks

20. Seven members make up board.

21. President appoints and Congress confirms members.

23. Central Bank The nation’s central bank is the Federal Reserve. They control the nation’s money.