1. Financial Institutions

2. Learning goal
To be able to compare various financial institutions and the services they offer.

3. Types of Financial Institutions
Commercial Banks
“Full-Service Banks”
Savings & Loan Associations
Originally ran by Government.

4. Types of Financial Institutions
Credit Unions
Non-Profit Bank for Organizations
Brokerage Firms
NOT a Bank
Provides Investing Advice and Products

5. Bank Services Checking & Savings Accounts Money Market Accounts
Certificates of Deposit
Loans
Mortgages
Safe Deposit Boxes

6. F.D.I.C. Federal Deposit Insurance Corporation
Federal government agency that protects bank accounts
Guards against bank panics
Insured up to $100,000.00

7. Learning goal
To be able to compare various financial institutions and the services they offer.

8. The Federal Reserve System

9. To be able to identify the major functions of the Federal Reserve.
Learning goal
To be able to identify the major functions of the Federal Reserve.

10. Federal Reserve System
AKA: “The Fed”
The central banking organization in the US
Set-up by Congress to end financial panics
Includes:
12 Federal Reserve District Banks
25 Branch Banks
5,000 Member Banks
Run by a board of Directors

11. 12 District Banks
25 Branch Banks

12. Federal Reserve System
6 Functions of the Fed:
Clearing Checks
Acting as the Federal Government’s Fiscal Agent
Supervising Member Banks

13. Federal Reserve System
6 Functions of the Fed: (Continued)
Regulating the money supply
Setting reserve requirements
Supplying paper currency

14. To be able to identify the major functions of the Federal Reserve.
Learning goal
To be able to identify the major functions of the Federal Reserve.