Functions of Money
Characteristics of Money
Types of Money
Banking Institutions
Nonbanking Institutions
100
Money serves as a way to accumulate wealth (buying power) until it is needed.
What is a store of value?
100
A characteristic of money that allows money to hold up to wear and tear.
What is durability?
100
Another name for a demand deposit account.
What is a checking account?
100
The largest and oldest of all financial institutions.
What is a commercial bank?
100
A business that protects clients against financial losses from certain specified risks.
What is an insurance company?
200
Money serves as a common standard or yardstick of the value of goods and services.
What is a measure of value?
200
A characteristic of money that allows people to trust the value of money and allow consumers to use it as a means of paying for purchases.
What is acceptability?
200
Another name for a time deposit account.
What is a savings account?
200
A financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion.
What is a credit union?
200
The fee charged by an insurance company.
What is a premium?
300
Money serves as an item accepted in exchange for a good or service, and it reduces the need for bartering.
What is a medium of exchange?
300
A characteristic of money that allows money to be easily divided into smaller denominations.
What is divisibility?
300
An account that is similar to a checking account but with more restrictions. For example, only a limited number of checks can be written each month.
What is a money market account?
300
A financial institution that primarily offers savings accounts and makes long-term loans for residential mortgages.
What is a savings and loan association?
300
A pool of individual investor dollars that are invested in a large number of securities, thereby creating a diversified investment portfolio.
What is a mutual fund?
400
A characteristic of money that allows it to maintain its declared face value?
What is stability?
400
A type of money that has a minimum monthly payment with interest charged on the remaining balance.
What is a credit card?
400
An institution that insures individual bank accounts.
What is the Federal Deposit Insurance Corporation?
400
A firm that buy and sells stock, bonds, and other securities for its customers and provides other financial services.
What is a brokerage firm?
500
A characteristic of money that allows money to be easily moved from one location to the next.
What is portability?
500
A type of money that looks like a credit card but works like a check.
What is a debit card?
500
The maximum amount the FDIC will insure in a personal bank account.
What is $250,000?
500
Allows consumers to perform an ever-widening array of financial transactions from their personal or work computers.
What is online banking?
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