1. Early bankers
Goldsmiths stored heavy gold coins because they already had the facilities.
Issued warehouse receipts
People began trading the receipts rather than coins
Goldsmiths got the idea to lend the coins that weren’t being used

3. Money Supply
Consists of currency, checking accounts and traveler’s checks
Savings accounts are not money, but rather near money = anything that can be quickly and easily converted to money
Credit cards are not money. They create debt rather than pay it off

4. Debit cards are used like a check but are an electronic transfer
Why is the money supply important to us??

5. Development of US Banks
Eventually other businesses began acting as banks
If they went out of business though, depositors lost their money
State chartered banks emerged

6. Many issued their own currency. Imagine how confusing this would be.
Several attempts were made to develop a national or central bank to stabilize the economy
People were fearful a strong federal government and central banks did not last long
In 1913, the Federal Reserve Act created the Federal Reserve System that we have today

7. Types of Banks Commercial Banks Savings and Loans Credit Unions
For profit
Savings and Loans
1980s crisis
Credit Unions
Not for profit