Banking and Finance Chapter 1

An agreed-upon system for measuring the value of goods and services

• money

• medium of exchange

• asset

• all of these

Institution, firm, or individual who mediates between two or more parties in a financial context

• depository intermediary

• financial center

• financial intermediary

• nondepository intermediary

Institution commonly thought of as a bank; owned by stockholders who expect a profit on their investments

• community bank

• central bank

• retail bank

• commercial bank

Thrift institutions such as mutual savings banks, savings and loans, and credit unions, developed to help individuals who are not served

• retail bank

• commercial bank

• central bank

• community bank

Government banks that manage, regulate, and protect both the money supply and the banks

• commercial bank

• retail bank

• community bank

• central bank

Occurs when someone intentionally obtains your personal information to use that information for personal gain

• phishing

• spearfishing

• identity theft

• scam

Customer with a good credit rating, sufficient collateral for loans, and ongoing income

• liquidity

• liquid customer

• credit score

• creditworthy

People who put money into banks

• lendee

• lender

• depositee

• depositor

Difference between what a bank pays in interest and what it receives in interest

• spread

• interest income

• net income

• none of the above

Anything of value

• asset

• equity

• liability

• medium of exchange