Banking and the Federal Reserve

Glossary

Bank: A place of business that lends, exchanges, takes care of, or issues money.

Charter: An official document granting, guaranteeing, or showing the limits of the rights and duties of the group to which it is given.

Circulation: The passage of money from person to person or place to place.

Coin: A piece of metal put out by a government authority as money.

Credit: An amount that a bank or company will let a person use with the promise of future repayment.

Currency: Money in circulation.

Debt: Something owed to another.

Federal Reserve: The current central banking system of the United States of America.

Federal Reserve Act of 1913: Written by Senator Robert L. Owen of Oklahoma and Congressman Carter Glass, thebill created the federal reserve system of twelve districts.

Interest: A charge for borrowed money that is generally a percentage of the amount borrowed.

Invest: To lay out money to return a profit.

Loan: Money lent at interest.

Profit: The gain after all the expenses are subtracted from the amount received.

Regulation: A rule or order telling how something is to be done.

Run: When a large number of customers withdraw their deposits from a bank at the same time because they are worried that the financial institution might go under or close and they will lose their money.

Speculation: The taking of a big risk in business in hopes of making a big profit.

Spoils system: A practice where a political party, after winning an election, gives government jobs to its voters as a reward for working toward victory, and as an incentive to keep working for the party.



Main Page
Federal Reserve Act of 1913
Biographies
Oklahoma City Branch
Economic Concepts
Glossary
Activities
Bibliography