You Can BANK on This! (Part 1)
Glossary terms from:
A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.
The industry involved with conducting financial transactions. Also, conducting business with a bank, e.g., maintaining a checking or savings account or obtaining a loan.
Trading a good or service directly for another good or service, without using money or credit.
A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
Characteristics of Money
Characteristics of money include it being durable (both physically and socially), divisible (money can be divided into increments appropriate for the cost of an item), transportable (literally meaning that money must be easy to move), and the ability to regulate the amount of money in a market by making it uncounterfeitable.
A written order to a financial institution directing the financial institution to pay a stated amount of money, as instructed, from the customer's account.
A financial account into which people deposit money and from which they withdraw money by writing checks.
Government-issued pieces of metal that have value and are used as money.
The opportunity to borrow money or to receive goods or services in return for a promise to pay later.
A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit.
A small, specially coded plastic card issued by a bank; allows the cardholder to transfer funds electronically and immediately from his or her checking account, as if the cardholder were writing a check to pay for a purchase.
Money owed to someone else. Also the state or condition of owing money. Can be individual, corporate or government debt.
Trading a good or service for another good or service, or for money.
Tangible objects that satisfy economic wants.
Money paid regularly, at a particular rate, for the use of borrowed money.
To grant someone the use of something, on condition that the object borrowed or its equivalent will be returned (often with interest, in the case of money).
Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.
Narrowly defined by economists as currency in the hands of the public plus checking-type deposits; also called M1. Other definitions of the money supply (M2, M3) include various savings deposits, money market deposits and money market mutual fund balances.
Certificates of various denominations generally recognized and accepted as a medium of exchange within a nation and elsewhere. Paper money is issued and backed by national governments or, in the case of the euro, by a group of governments.
To keep money for future use; to divert money from current spending to a savings account or another form of investment.
Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).
Activities performed by people, firms or government agencies to satisfy economic wants.
Use money now to buy goods and services.
The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time. Normally, as the price of a good or service rises (or falls), the quantity supplied of the good or service rises (or falls).
The exchange of goods and services for money or other goods and services.
Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.