Politics and Economics Vocabulary 3 Mr. Thacker

Section 2: Banking and Financial Markets Chapter 10

Identify and/or Explain

1. Money supply

2. M1

3. Liquidity

4. Public

5. Checking accounts

6. Demand deposits

7. M2

8. Money market mutual funds

9. Certificates of deposits (CDs)

10. Interest

11. Fractional reserve banking

12. Default

13. Mortgage

14. Credit Cards

15. Principal

16. Annually

17. Commercial banks

18. Saving and Loan Associations

19. “thrifts”

20. Mutual savings banks

21. Credit unions

22. Finance companies

23. Automated Teller Machine

24. Debit cards

25. Automatic Clearing Houses

26. Creditor

Questions

1. List the four way that banks offer people to save money? (4)

2. Create an excel spreadsheet demonstrating compound interest.