B ANKING AND THE U S C OMMERCIAL
B ANKING AND THE U. S.
C OMMERCIAL B ANKS Privately owned and operated Money is insured by Federal govt. Provide: Services to both individuals & businesses Savings accounts Checking accounts, money market accounts, & CD’s (certificate of deposit) Loans, credit cards Help to customers to manage money
S AVINGS & L OANS Specialize in long term home mortgage loans Accept deposits
C REDIT U NIONS Owned & operated by their members Non-profit bank Low interest loans Checking accounts Higher interest rates on savings accounts
S ECURITIES & E XCHANGE C OMMISSION Brokerage firms buy & sell stocks for their customers Advise people on investments Dividends may be higher than interest offered by banks
W HY IS IT IMPORTANTTO SAVE MONEY? Pay for education Medical bills Emergencies Large purchases
H OW DOES THE U. S. ECONOMY BENEFIT WHEN PEOPLE DEPOSIT MONEY? Helps expand the economy Producers may borrow money Banks invest your savings
W HAT CHOICES DOES AN INDIVIDUALHAVE IF HE/SHE WANTS TO SAVE OR INVEST $? Commercial banks Savings and loans Savings banks Credit unions Securities & exchanges (brokerage firms)
H OW DOES THE GOVT. HELP PROTECT SAVINGS & INVESTMENTS? Savings are insured (FDIC) Federal Deposit Insurance Corporation (NCUA) National Credit Union Association Regulating stock exchanges & savings organizations
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