17. 17-1 Banks and Other Financial Institutions 17-2 Financial Services and Electronic Banking 17-3 Checks and Payment Methods. Banking and Financial Services. Goals Explain the purpose of the Federal Reserve System. List the types of financial institutions.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
17 17-1 Banks and Other Financial Institutions 17-2 Financial Services and Electronic Banking 17-3 Checks and Payment Methods Banking and Financial Services
Goals Explain the purpose of the Federal Reserve System. List the types of financial institutions. Discuss factors for selecting a financial institution. Chapter 17 LESSON 17-1Banks and Other Financial Institutions
Federal Reserve System (Fed) commercial bank credit union Federal Deposit Insurance Corporation (FDIC) Chapter 17 Key Terms
A bank is a business that sells services such as checking and payment accounts, savings accounts, loans, and investments. • Regulated more strictly than most businesses due to the number of people involved if the bank fails. • The Federal Reserve System (Fed) • A bank that will not allow you to make deposits. • A bank for other banks Chapter 17 THE BANKING SYSTEM
Federal Reserve Bank activities • Holds reserves….a part of the money deposited by customers @ a bank in case additional funds are needed to meet daily customer demand • A bank will lend only a certain percentage of deposited funds. • Regulation is designed to help the banking system and the economy operate efficiently to protect depositors • Clearing checks….paying of checks among different banks in different cities. • Ensures the correct amounts are added and subtracted from the appropriate customer accounts. Chapter 17 THE BANKING SYSTEM
What is the main purpose of the Federal Reserve System? Chapter 17 >> C H E C K P O I N T
Deposit institutions • Commercial banks – most common • Also called full-service banks • Offer a wide range of financial services; checking, savings, loans to individuals and businesses • Savings and loan associations – specialize in savings accounts and home mortgages. • Mutual savings banks – a savings bank owned by and operated for its depositors • Credit unions – a user-owned, not-for-profit cooperative financial institution. Chapter 17 TYPES OF FINANCIAL INSTITUTIONS
Non-deposit financial institutions • Life insurance companies • Investment companies • Consumer finance companies • Mortgage companies • Check-cashing outlets • Pawnshops Chapter 17 TYPES OF FINANCIAL INSTITUTIONS (continued)
What are some examples of non-deposit financial institutions? Chapter 17 >> C H E C K P O I N T
Services offered • Savings accounts • Checking and payment accounts • Loans and other credit plans • Other services, such as safe deposit boxes • Safety • FDIC • NCUA • Convenience • Fees and charges • Restrictions Chapter 17 SELECTING A FINANCIAL INSTITUTION
What factors should be considered when selecting a financial institution? Chapter 17 >> C H E C K P O I N T