| Bank charter | The license authorizing the operation of a bank.
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| Bank holding company | A company that owns one or more banks and possibly other nonbank subsidiaries.
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| Defined-benefit pension plan | A pension plan in which beneficiaries receive a lifetime retirement income based on the number of years they worked at the company and their final salary.
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| Defined-contribution pension plan | A pension plan in which beneficiaries make payments into an account and then receive the accumulation, plus the investment income, on retirement, at which time they must decide what to do with the funds. The options include accepting a lump sum, removing small amounts at a time, or converting the balance to a fixed monthly payment for life by purchasing an annuity.
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| Dual banking system | The system in the United States in which banks supervised by federal government and state government authorities coexist.
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| Economies of scale | When the average cost of producing a good or service falls as the quantity produced increases.
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| Economies of scope | When the average cost of producing a good or service falls as the number of different types of goods produced increases.
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| Eurodollars | Dollar-denominated deposits outside the U.S.; eurodollars held by U.S. citizens are part of M3.
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| Fannie Mae | The Federal National Mortgage Association; a government-sponsored entity that aids in the financing of home mortgages.
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| Financial holding company | A company that owns a variety of financial intermediaries.
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| Hedge funds | Private, largely unregulated, investment partnerships that bring together small groups of people who meet certain (high) wealth requirements.
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| London Interbank Offered Rate (LIBOR) | The interest rate at which banks lend eurodollars to other banks.
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| Property and casualty insurance | Insurance against damage from events like automobile accidents, fire, and theft.
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| Reinsurance company | A very large company that provides insurance to insurance companies.
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| Term life insurance | Insurance that provides a payment to the policyholder's beneficiaries in the event of the insured's death at any time during the policy's term.
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| Underwriting | The process through which an investment bank guarantees the price of a new security to a corporation and then sells it to the public.
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| Unit bank | A bank without branches.
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| Universal bank | An institution that engages in all aspects of financial intermediation, including banking, insurance, real estate, brokerage services, and investment banking.
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| Vested | When the contributions your employer has made to the pension plan on your behalf belong to you.
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| Whole life insurance | A combination of term life insurance and a savings account in which a policyholder pays a fixed premium over his or her lifetime in return for a fixed benefit when the policyholder dies.
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