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Reference

Reference

Plain-English definitions for the terms you'll encounter on your financial journey.

📖 1402 Terms Defined
C
Central Bank🏛️ Macroeconomics

An institution that manages the currency, money supply, and interest rates of an entire nation. It also oversees the commercial banking system and acts as a lender of last resort.

Commercial Bank🏦 Banking

A financial institution that accepts deposits, offers checking account services, and provides loans to businesses and individuals.

Credit Union🏦 Banking

A member-owned financial cooperative that provides traditional banking services, often with better rates than commercial banks.

D
Discount Rate🏛️ Macroeconomics

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility. It influences other interest rates in the economy.

M
Monetary Base🏛️ Macroeconomics

The total amount of a currency that is either in general circulation in the hands of the public or in the commercial bank deposits held in the central bank's reserves.

Money Multiplier🏛️ Macroeconomics

The maximum amount of broad money that could be created by the commercial banking system for a given unit of central bank money.

P
Prime Rate💰 Personal Finance

The base interest rate that commercial banks charge their most creditworthy corporate customers, influencing consumer rates.