Show me the Money
What is Money?
anything that is acceptable as payment for goods and services
Main functions of the Federal reserve
monetary policy, setting rules on credit, distributing currency, and making check clearing easier
What role do financial institutions in the US
allows people to borrow money and earn interest on savings.
Why was the FDIC created
insure deposits in commercial banks after the great depression
What role do U.S. banks play in the international marketplace
U.S. banks provide loans and trade-related services to foreign governments and businesses
What are the characteristics of money
Scarcity, Durability, Portability, and divisbility
Name the 3 main tools used to carry out monetary policy
open market operations, reserve requirements, discount rates
Financial intermediation
The middle man between supplier of funds and demander of funds
Name one power the FDIC has
Reserve authority to set reserve requirements, ban interest on demand deposits, regulate the interest rates on time deposits, and prohibit banks from investing in specified types of securities
Why is it hard for U.S banks to expand internationally
Banks in other nations are often subject to fewer regulations than U.S. banks, making it easier for them to undercut American banks on the pricing of loans and services
Store of value
What does selective credit control do
It controls the credit terms on some loans made by banks and other lending institutions includes consumer credit rules and margin requirements
Name Non depository institutions
insurance companies, pension funds, brokerage firms, and finance companies
The ceiling for insured deposits apart of the Federal reserve system?
$250,000 per account
What makes international banking a high risk venture
Political and economic uncertainty
Time deposits can't withdrawn on demand
What is the most frequently used tool used by the federal reserve to make monetary policy
open market policy
A pension fund is
large pools of money for later use in paying retirement benefits to their employees or members
How does the FDIC ensure banks operate fairly and profitably
sets guidelines for banks and then reviews the financial records and management practices of member banks at least once a year
international banks stimulate the the economy by
Job creation
What are the 3 main functions of money
medium of exchange, standard of value, and store of value
What was the Fed’s role in keeping the U.S. financial markets solvent during the 2007–2009 financial crisis?
the Fed set up a special loan program to stabilize the banking system and to keep the U.S. bond markets trading at a normal pace
name 3 services offered by depository institutions
savings accounts, checking accounts, money market deposits accounts, Certificate of deposits, consumer loans, business loans, electronic fund transfer, ATM, debit cards, online banking, mobile apps, direct deposit of paycheck
Name the major deposit insurance funds
The Deposit Insurance Fund (DIF) and The National Credit Union Share Insurance Fund
Name one of the worlds biggest banks
Industrial and Commercial Bank of China, China Construction Bank, JPMorgan Chase & Co. (USA), Wells Fargo & Co. (USA), Agricultural Bank of China Bank of America Corp. (USA), Bank of China Ltd. Citigroup (USA), 2017 BNP Paribas (France), Mitsubishi UFJ Financial Group (Japan)