REVIEW

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?

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E – checks or have payments withdrawn form your account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

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

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

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

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

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

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

Opening a Checking Account

The Bank will ask you to provide Photo ID Signature Address Initial Deposit Social security number

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

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

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

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

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

Check Register

Reconcile a Checking Account Balancing a checkbook register to

the balance shown on the monthly bank statement Comparin

g the Two