1. CH HOW BANKS WORK
BANKING SERVICES

2. http://www.youtube.com/watch?v=Rnb6Nmy pnIE&feature=player_detailpage
yer_detailpage&v=bbKQvdLDAic

3. THE ROLE OF BANKS Banks are in Business to Earn a Profit!
They earn money by selling Financial Services
They earn money from interest on money they lend out to consumers

4. THE ROLE OF BANKS Banks Provide Security.
They provide a safe haven for your money! Smarter than putting money under your mattress!
Banks are Regulated.
Banks have more rules and regulations than almost any other type of business.
Why?
Great Depression of 1929!
Insured Deposits:
FDIC (Federal Deposit Insurance Corporation) – the Federal Government insures deposits in most banks up to a maximum of $250,000 – So if the bank fails, you will still get your money back!! – Thanks Great Depression!

5. THE ROLE OF BANKS Banks Make Borrowing Easier.
To buy a House, Car other Fixed expenses, banks lend money to consumers.
In order for Banks to lend money, they use the money from the savers. The people that just like to save their money.
If someone wanted to borrow $100 from you and is willing to pay you $120 after 1 year…what information would you want about this person before you would lend your money? Make a list of questions.

6. TYPES OF MONEY
Currency – paper money and coins used for financial transactions
Only used for small transactions now-a-days
Large payments are made through checks or electronic transactions.
How does the Federal
Government make
Currency counterfeit free?
Foreign currency…

7. ADVANTAGE OF USING CHECKS
Check – an order to a bank to pay a specified
sum to a person or Business.
Safety: it is not as dangerous as currency. Checks are made out to a specific person or business are the only person/people that can cash that check
Safer to send through the mail. Do not want to have money in envelopes

8. ADVANTAGE OF USING CHECKS
Convenience: easier to buy things.
You cannot carry $20,000 to buy a new car, but 1 check would do the job for you!!
Records your Transactions: Banks automatically record the check when it cashes.
Easier to keep track of purchases. Better than currency