1. Marissa Doria
Block 3

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