Lesson 1
Serves as a medium of exchange, a measure of value, and a store of value.
What is money? or What are the functions of money?
Funds placed into a financial Institution
What is a deposit?
The central bank of the United States that manages currency, regulates commercial banks, serves as the government’s bank, and conducts certain policies to keep the economy healthy and strong.
What is the Federal Reserve?
Types of accounts banks offer include savings accounts, checking accounts, money market accounts and ________________.
What are certificates of deposit (CDs)?
Year the Federal Reserve was created
What is 1913?
Without money we would need to do this, or trade, for the things we need and want.
What is barter?
When a customer borrows funds from a financial institution to purchase a house, car or pay for education
What is a loan?
The Fed is run by a seven-member __________________ ; each appointed by the president and confirmed by the Senate.
What is the Board of Governors?
What banks pay customers when they deposit money into the bank
What is Interest?
Thousands of banks failed when panicky depositors all tried to withdraw their money and the banks were short of cash.
Money must be easy to move (portable), easy to split into smaller units (divisible), lasting (durable), and what?
What is Limited Supply?
How a bank makes money
What is to charge interest and fees?
What is 12?
Venmo, Cash App, PayPal, Zelle
What are Electronic Methods of banking?
In response to the Great Depression, this was passed by Congress which created the deposit insurance program
What is the Banking Act of 1933?
Coins, paper, and electronic
What are the 3 forms of money?
Commercial Banks, Savings & Loans (S & L), and _______ are the 3 types on financial institutions
What are Credit Unions?
The Fed committee that manipulates the money supply to stimulate economic growth
What is the Federal Open Markets Committee (FOMC)?
The first two national banks lasted only this number of years
What is 20?
Resulted from financial institutions, such as Lehman Brothers, making too many risky home loans.
What was the 2008 financial crisis/recession?
Shells, Beads, Stones, Cloth, Cheese, Gold & Silver
What are forms of money in the past?
Government agency formed to restore confidence in the safety of deposits
What is the FDIC (Federal Deposit Insurance Corporation?
The FOMC buys government bonds, lowers the discount rate, and/or lowers the reserve requirement.
What is to expand the money supply?
Allowed banks to get a national charter
What was the 1863 the National Bank Act?
Enacted under the Emergency Economic Stabilization Act, which authorized up to billion to stabilize the financial system during the subprime mortgage crisis
What is TARP (Troubled Asset Relief Program)?