Ch 10-2 Vocab

2. brief period during which all banks or depository institutions are closed to prevent bank runs.
5. originally; at the beginning.
7. an commercial bank chartered by the National Banking System.
8. a system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold.
12. currency that must be accepted for payment by decree of government
13. paper currency backed by, and redeemable for, silver from 1878 to 1968

1. The United States government institution that provides deposit insurance on the depositor’s account.
3. paper currency backed by gold; issued in 1863 and popular until recalled in 1934.
4. a bank that can lend to other banks in times of need, or a “bankers’ bank.”
6. a stipulation, usually in a legal document
9. currency backed by government bonds and issued by commercial banks in the National Banking System.
10. a bank that receives its charter from the state in which it operates.
11. sudden rush by depositors to withdraw all deposited funds, generally in anticipation of bank failure or closure.