2. Federal Reserve System
Supervises and regulates member banks and helps
banks serve the public efficiently
They hold reserves
Clearing checks in different cities: Paying of checks
among different banks in different cities
3. The Way the Banking System
Works
Build Homes
Start New Businesses
Plant Crops
Finance Educations
Buy Goods
Pave Streets
Invest for Retirement
Build Hospitals
Buy New Business Equipment
4. Commercial Bank
It is the most common way for a bank to be organized
They are often called full service banks because they
offer a wide variety of financial services
Examples: Savings Department, Trust Department and
Real Estate Department
5. Credit Union
User-owned, not-for-profit, cooperative financial
institution
Examples: When a person deposits money and The
National Credit Union Administration
6. Four Factors that go into deciding
which Bank to Use
Safety
Convenience
Fees and Charges
Restrictions
7. Popular Banks in North Carolina
Bank of America
Wachovia
Bank of North Carolina
Sun Trust
8. Electronic Banking
Use of computers and other technology for banking
activities
EFT is useful because it allows the customer many
financial services
9. Credit Card vs. Debit Card
Credit Cards are borrowing from the bank to pay later
Debit card or a cash card is used for ATM transactions
Banks would prefer you use a debit card
10. Automatic Bill Payment
Requires a bank customer to authorize preset amounts
of monthly expenses
It is useful because the bank deducts the payments
from your account and transfer them to the
appropriate companies
11. Service Charge and Bank
Reconciliation
Banks have to take money in order to make their
money
Fee a bank charges for handling a checking account
Bank Reconciliation—Document created to show how
the two balances were brought into agreement
12. Stop Payment Order and Stored
Value Card
Written notice that tells the bank not to pay a certain
check
Stored Value Card—Prepaid cards for phone services,
transit fares, highway tolls, laundry service and school
lunches are common. You can recharge with an
additional amount
13. Signature Card
Opening your checking account starts with signing a
signature card
It verifies your signature
