Economics 6.2

Bank

A business that holds and lends money. It keeps deposited money safe and uses it to give loans to people and businesses, making a profit from the interest it charges

National Bank

A commercial bank that is chartered and supervised by the federal government and can operate in any state.

Bank Runs

When a large number of customers simultaneously withdraw their money from a bank because they fear it will fail.

Greenbacks

Emergency paper notes issued by the U.S. government during the Civil War to pay for the war.

Gold Standard

A system where a country's currency was tied to a fixed amount of gold

Central Bank

The national institution that manages a country's money supply and controls monetary policy.

Federal Reserve Banks

The 12 regional operating arms of the U.S. central bank, known as the Fed

Member Banks

A commercial bank that is part of the Federal Reserve System.

Federal Reserve Board

The main governing body of the U.S. central bank, known as the Fed.

Short-Term Loans

Loans that must be paid back soon, usually within a year.

Federal Reserve Notes

The paper money (cash) issued by the Federal Reserve.

Foreclosures

When a bank takes back property because the owner can’t pay the loan.