Chapter 12 Money and Banking

2. trading goods and services directly for other goods or services
3. standard of value and means of payment
4. property or goods pledged by a borrower to use as security on a loan
7. secure box in a bank vault used for safe storage of valuables
8. rate the bank pays customers for keeping their money
12. funds set aside for emergencies
13. primary way banks make profit
14. there are 12 of these in the federal reserve
16. a firm that manages money
17. central bank of the US, bankers bank, monitors money supply
20. electronic transfer of payment directly from payer's account to the payee's
21. record of the money deposited or withdrawn from a bank

1. used for storing money over a longer period of time
5. coins, currency, check and debit cards that society uses
6. money taken out of a bank account
9. hold customers' funds in interest bearing account and invest mainly in mortgage loans
10. used for storing money in the short term
11. not-for-profit bank set up by organizations for their customers
15. banks that are "full service" and serve individuals and businesses
18. allows money to transfer from one account to another through computers
19. an agreement which the borrower gives a lender the right to take the property if loan is not repayed