1. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Financial Services 17.1 17.1Financial Institutions 17.2 17.2Common Financial Services 17.3 17.3Investing and Investments CHAPTER 17

2. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 17.1 17.1 Financial Institutions DLTs ● Identify several types of banks and how they are regulated. ● Discuss the similarities and differences among nonbanking financial institutions and banks. 2 CHAPTER 17

3. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Banks and Nonbanks ● Bank—financial institution that must accept demand deposits, make consumer and commercial loans, and buy and sell currency and government securities ● Nonbank—financial institution whose primary purpose is to offer financial products and services other than deposits and loans 3 CHAPTER 17

4. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Types of Banks ● Commercial banks—full-service, serve all types of customers ● Savings institutions—emphasize loans for residential mortgages; include savings and loans and mutual savings banks ● Credit unions—nonprofit associations whose services are restricted to members 4 CHAPTER 17

5. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Banks ● Federal Reserve System (Fed) ● Federal Deposit Insurance Corporation (FDIC) ● National Credit Union Share Insurance Fund (NCUSIF) 5 CHAPTER 17

6. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Nonbank Financial Institutions ● Types of nonbanks ● Finance companies ● Insurance companies ● Pension funds ● Mutual funds ● Securities and investment firms ● Financial services companies 6 CHAPTER 17

7. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 17.2 17.2 Financial Services DLTs ● Describe the value and uses of checking accounts and loans. ● Discuss the ways in which technology is changing banking services. 7 CHAPTER 17

8. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Common Banking Services ● Checking accounts ● Accepting and processing checks ● Loans 8 CHAPTER 17

9. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e ©2013 Cengage Learning. All Rights Reserved. Parts of a Check 9 CHAPTER 17

10. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Interest Rates ● Prime rate ● Fixed interest rate ● Variable interest rate 10 CHAPTER 17

11. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology and Financial Services ● Electronic funds transfer (EFT) ● Direct deposit ● Automatic teller machine (ATM) ● Electronic banking 11 CHAPTER 17

12. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 17.3 17.3 Investments and Investing DLTs ● Identify the characteristics of various investment instruments. ● Describe how investment decisions can be made to meet financial goals. 12 CHAPTER 17

13. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Investment Instruments ● Interest-bearing checking accounts ● Savings accounts ● Savings bonds ● Certificates of deposit ● Money market accounts ● Mutual funds ● Treasury instruments 13 CHAPTER 17

14. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Making Investment Choices ● Investment goals ● Liquidity ● Safety ● Growth ● Investment trading 14 CHAPTER 17