Also Known as the FED Known as the “Central Bank” of the United States Main Function:...
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![Page 1: Also Known as the FED Known as the “Central Bank” of the United States Main Function: controlling money supply through monetary policy Other Functions:](https://reader036.fdocuments.net/reader036/viewer/2022072006/56649d0d5503460f949e23b8/html5/thumbnails/1.jpg)
REVIEW
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Federal Reserve System
Also Known as the FED Known as the “Central Bank” of the United States Main Function: controlling money supply
through monetary policy Other Functions:
Depository Service for US Government Influencing Interest Rates Supervising and Regulating Commercial Banks
Does The Federal Reserve System Print the Money? Who Does?
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Deposits
Deposit-when you put your paycheck or cash into your account at the bank,
E – checks or have payments withdrawn form your account
Direct Deposit-allows pay and benefit checks to be directly deposited into a specified account Paperless form. Authorizes bills to be paid by a specified account
without having to write a check Helps prevent check fraud because an actual check is
not floating around the issuer, receiver and account
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Financial Institutions- Commercial Banks
Offer a wide variety of services and products Checking/Savings Accounts, Loans, Safe-
Deposit Boxes, CD’s, Investment Opportunities, Credit Cards, Mortgages,
FDIC (Federal Deposit Insurance Corporation) Insure federally chartered commercial
banks against loss of your deposits Covers up to $250,000
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Financial Institutions-Saving and Loans Association
Focuses on providing loans and mortgages to customers
Offer many of the same services as Commercial Banks, However their focus is on Loans and Mortgages
Generally pay a higher interest rate than commercial banks
FDIC Insured up to $250,000
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Financial Institutions-CREDIT UNION
Member owned Bank:(By Account Holders) Account Holder-the person who owns the money in an
account
Accounts are called Share Accounts
National Credit Union Administration (NCUA) Provides insurance for Credit Unions
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Financial Institutions-Brokerage Firms
Offer money management plans for investing Main service is providing Investments
Provide financial assistance and advice
you can buy Stocks & Bonds is with a Brokerage Firm
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Financial Institutions-Payday Loan Companies
Small Businesses that say “Cash Paycheck Here” or “Get CASH Now”
Will charge the HIGHEST Interest rates out of all other Financial Institutions
SAY NO TO PAYDAY LOAN COMPANIES
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Checking Accounts
Purpose of Having a Checking Account? Hold money in a secure place Makes transactions more convenient
Account Holder- person who own the money in the account
Access to Funds: Automated Teller Machine (ATM)-Electronic
computer terminals offering automated, computerized banking
Debit Card-card that allows person to carry less cash Checks-Most Similar to using a Debit Card Electronic Banking- Telephone, Internet access, ATM
Transactions
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Opening a Checking Account
The Bank will ask you to provide Photo ID Signature Address Initial Deposit Social security number
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Checking Accounts-Safety with ATM/Debit Card
Sign the Back of the Card and also write see ID
If lost: Report within 2 business days card
holder is reliable for $50.00 Report after 2 business days card holder
is reliable for $500.00
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Bouncing a Check
Check written for an amount over the current balance held in the account
You could be charged a fee by the following for Bouncing a Check The Store could charge you a fee Your Bank will charge you a fee Hurt your Credit Rating
“Check 21” Decreased the amount of “Float” Time It clears the check more quickly than in the
past
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Writing A Check
Name of Person Writing Check Check #Address Date:
Pay to theOrder of : The name of the Payee
$ Amount
Check Amount in Words
Memo: Reason For Writing Check Signature:Payee: Person who is receiving the check
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Check Endorsement
Blank Just Sign your name Can deposit and Cash Withdrawal
Restrictive Write “For Deposit Only” with Account #
and Sign your nameSpecial
Write “Pay to the order of” (to who you want to pay) and Sign your name below
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Deposit Slip
Date of Deposit
Sign ONLY if you want cash Back Net Amount Deposited
into Bank: check amount – cash received
Check Number
Amount of CASH you want from Check
Check Amount
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Check Register
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Reconcile a Checking Account Balancing a checkbook register to
the balance shown on the monthly bank statement Comparin
g the Two