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.
500 POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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 districts are part of the Federal Reserve System?
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?
800 POINTS!!!!!
Medium of exchange,
Standard of value
Store of value
Define financial institution.
Organization for managing your money in our community or in the economy.
Define collateral
something of value that a borrower lets the lender claim if a loan is not repaid.
What is money?
Can be anything that people accept as a standard of payment.
Other than a bank or credit union. Name three other types of financial institutions.
DOUBLE YOUR POINTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Mortgage Company
Insurance Company
Brokerage Firm
What is included in M1?
Currency,
coins,
demand deposits (part of your checking account and using your debit card)
Bank Reserves
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 of 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.
Which vocabulary word am I?
a storage unit at a bank or other financial institution in which valuables and important documents are stored for safekeeping. ( Examples: deed to your home, adoption papers, marriage/divorce decree, passport, will, savings bonds, power of attorney, military records, birth certificates, funeral instructions, valuable jewelry or collectibles, death certificates, original stock certificates, car titles, and insurance policies.
safety-deposit box
What is included in the M2?
consists of M1 (currency held by the public plus checkable deposits)
plus savings deposits, money market, certificate of deposits and time deposits.
Define interest.
Is the rate that the bank pays you for keeping your money or borrowing money from them.
Name three roles that the Federal Reserve System plays in our economy.
TRIPLE POINTS
•Regulating the money supply
•Setting reserve requirements
•Supplying paper currency
•Clearing checks
•Acting as the federal government’s fiscal agent
•Supervising member banks
Name 3/4 types of loans that financial institutions offer.
DOUBLE YOUR POINTS!!!!!!!!!!!!!!!!!!!!!!!
•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?
DOUBLE JEOPARDY! DOUBLE THE POINTS
stable
scarce
durable
divisible into parts
portable
accepted
Name three ways in which a bank and credit union are different.
DOUBLE YOUR POINTS!!!!!!!!!!!!!!!!!
Bank-Investor owned and operated
high interest rates on loans
Insured by FDIC ($250,000)
Maintenance fees on most accounts
Profit-focused
Modest dividends on savings
Typically, publicly traded with a paid board of directors
Credit Union
Member owned and operated
Low interest rates on loans
Community-focused
No or LOW maintenance on most accounts
High dividends
Shares owned by members and has a board directors (volunteer)
NCUA Insured $250,000
What is the difference between a withdrawal and a deposit?
A deposit adds value to your bank account. It increases funds in your bank account to withdraw at a later time.
A withdrawal is taking money out of your account. It decreases funds in your bank account.
Define the Federal Reserve System?
TRIPLE YOUR POINTS!!!!!!!!!!!!!!!!!!!!!!!!
Is a central banking organization in the United States. The Fed is responsible for controlling the amount of money in circulation (publication).
Name three primary functions of a bank.
FOUR TIMES YOUR POINTS!!!!!!!!!!!!!!!!!
store money
Lend money (main function)
Transfer money