US Money Supply
What does it mean that money is divisible?
It should be able to be divided into parts
Name three financial institutions that you have seen in your community.
Wells Fargo, Bank of America, Virginia Credit Union, SunTrust & BB& T(merged now called Triuist Call), Wood Forest, Federal Credit Union, Argent Credit Union--not limited to this list.
How many Federal Reserve Banks are there in the US?
12
What is the monetary system?
Goods and services are indirectly exchanged using money which then can be exchanged for other goods and services.
Who is Jerome Powell?
What are the three functions of money?
Medium of exchange, measure of value, store of value
Define financial institution.
Organization for managing your money in our community.
Define money supply.
All the money in the economy at any given time period.
What is money?
Can be anything that people accept as a standard of payment.
Name two types of financial institutions.
Acceptable Answers: banks, credit unions, savings and loan associations, insurance companies, brokerage firms, finance companies.
What is included in M1?
Currency, checks, demand deposits and traveler's checks.
Define bank account.
Is a record of how much money a customer has put in to or taken out of a bank.
Where is the location of Board of Governor's or members of the Federal Reserve System?
Washington, D.C. (Our nation's capital)
What is EFT? Explain your answer.
Electronic Funds Transfer--Money is transferred from one account to another through a network of computers.
Name two types of financial institutions.
1.Commercial banks
2.Savings and Loan Associations
3.Credit Union
4.Other Types of financial institutions
What is included in the M2?
consists of M1 (currency held by the public plus checkable deposits) plus savings deposits, money market mutual funds, and small time deposits.
Define interest.
Is the rate that the bank pays you for keeping your money.
What is the primary responsibility of the Federal Reserve System?
Responsible for controlling the amount of money in circulation.
Name 2/4 types of loans that financial institutions offer.
•A mortgage loan
•A commercial/business loan
•An individual/personal loan
•A line of credit
Is a bank for profit or not?
Yes, a bank (full-service/commercial) is for profit. Banks are in business to make money. It's all about the Benjamin's!
What are the six characteristics of money?
stable
scarce
durable
divisible into parts
portable
accepted
Define money.
Anything that can be used as a standard of payment.
What is the difference between a withdrawal and a deposit?
A withdrawal is taking money out of your account. It decreases funds in your bank account.
What is the Federal Reserve System?
Is a central banking organization in the United States. The Fed is responsible for controlling the amount of money in circulation (publication).
Name 2/3 primary functions of a bank.
store money
Lend money (main function)
Transfer money