Itb Chap 17
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Itb Chap 17

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Itb Chap 17 Itb Chap 17 Presentation Transcript

  • Banking and Financial Services 17-1 Banks and Other Financial Institutions 17-2 Financial Services and Electronic Banking 17-3 Checks and Payment Methods 17
  • LESSON 17-1 Banks and Other Financial Institutions
    • Goals
    • Explain the purpose of the Federal Reserve System.
    • List the types of financial institutions.
    • Discuss factors for selecting a financial institution.
  • Key Terms
    • Federal Reserve System (Fed)
    • commercial bank
    • credit union
    • Federal Deposit Insurance Corporation (FDIC)
    View slide
  • THE BANKING SYSTEM
    • The Federal Reserve System (Fed)
    • Federal Reserve activities
    • Banking and the economy
    View slide
  • >> C H E C K P O I N T
    • What is the main purpose of the Federal Reserve System?
  • TYPES OF FINANCIAL INSTITUTIONS
    • Deposit institutions
      • Commercial banks
      • Savings and loan associations
      • Mutual savings banks
      • Credit unions
  • TYPES OF FINANCIAL INSTITUTIONS
    • Non-deposit financial institutions
      • Life insurance companies
      • Investment companies
      • Consumer finance companies
      • Mortgage companies
      • Check-cashing outlets
      • Pawnshops
    (continued)
  • >> C H E C K P O I N T
    • What are some examples of non-deposit financial institutions?
  • SELECTING A FINANCIAL INSTITUTION
    • Services offered
      • Savings accounts
      • Checking and payment accounts
      • Loans and other credit plans
      • Other services, such as safe deposit boxes
    • Safety
    • Convenience
    • Fees and charges
    • Restrictions
  • >> C H E C K P O I N T
    • What factors should be considered when selecting a financial institution?
  • LESSON 17-2 Financial Services and Electronic Banking
    • Goals
    • Identify the financial services used by consumers.
    • Explain types of checking accounts.
    • Describe electronic banking activities.
  • Key Terms
    • safe-deposit box
    • service charge
    • debit card
  • TYPES OF FINANCIAL SERVICES
    • Savings services
    • Payment services
    • Lending services
    • Electronic banking
    • Storage of valuables
    • Investment advice
    • Management of trusts
  • >> C H E C K P O I N T
    • What are the main financial services used by consumers?
  • TYPES OF CHECKING ACCOUNTS
    • Regular checking accounts
    • Interest-earning
    • Checking accounts
    • Special checking accounts
  • COMPARING CHECKING ACCOUNTS
    • Minimum balance
    • Interest rate earned, if any
    • Monthly service charge
    • Fees for other services, such as printing checks and stop payment orders
    • Other restrictions
  • >> C H E C K P O I N T
    • What are three main types of checking accounts?
  • ELECTRONIC BANKING
    • E-banking services
      • Automatic teller machines
      • Payments at the point-of-sale
      • Direct deposit
      • Automatic bill payments
  • ELECTRONIC PAYMENT OPTIONS
    • Debit card transactions
    • Online payments
    • Stored-value cards
    • Smart cards
  • BANKING IN THE FUTURE
    • Financial services combined with wireless technology
    • Personalized systems for obtaining, transferring, and using funds
  • >> C H E C K P O I N T
    • What are common electronic banking services?
  • LESSON 17-3 Checks and Payment Methods
    • Goals
    • Describe three main types of endorsements.
    • Describe proper check-writing procedures.
    • Explain the bank reconciliation process.
    • Identify other payment methods.
  • Key Terms
    • endorsement
    • check register
    • stop payment order
    • bank statement
    • bank reconciliation
    • outstanding checks
  • OPENING A CHECKING ACCOUNT
    • Benefits of checking accounts
      • Convenience and ease of making payments
      • Safety to make payments with less risk than using cash
      • Proof of payment
      • A record of finances for managing your money
  • THE FIRST DEPOSIT
    • Signature card
    • Joint account
    • Deposit slip
  • SIGNATURE CARD
  • TYPES OF ENDORSEMENTS
    • Blank endorsement
    • Full endorsement
    • Restrictive endorsement
      • Special endorsement
      • Two signatures required
      • Restrictive endorsement
  • SAMPLE ENDORSEMENTS
  • >> C H E C K P O I N T
    • What are the three types of endorsements?
  • USING A CHECKING ACCOUNT
    • Check-writing procedures
      • Elements of a check
      • The check register
      • Writing a check
      • Proper check writing
    • Stopping payment
  • PARTS OF A CHECK
  • >> C H E C K P O I N T
    • What is the purpose of a check register?
  • THE RECONCILIATION PROCESS
    • Bank statement information
    • Determine checks paid
    • Find differences
    • Calculate adjusted balance
  • MONTHLY ACCOUNT STATEMENT
  • RECONCILIATION FORM
  • >> C H E C K P O I N T
    • What are causes of differences between the bank statement balance and a person’s check register?
  • OTHER TYPES OF PAYMENTS
    • Certified checks
    • Cashier’s checks
    • Traveler’s checks
    • Money orders
  • CERTIFIED CHECKS
    • Personal check for which a bank has guaranteed payment
    • Certification stamped on face
    • Signed or initialed by a bank officer
  • CASHIER’S CHECKS
    • Check that a bank draws on its own funds
    • Costs the amount of the check plus a service fee
    • More acceptable than the personal checks
  • TRAVELER’S CHECKS
    • Special forms designed for making payments when away from home
    • Require your signature in two places
    • Cash a check or pay for a purchase
    • Commonly accepted throughout the world
  • MONEY ORDERS
    • Form of payment that orders the issuing agency to pay the amount printed on the form to another party
    • A bank money order
    • A postal money order
    • An express money order
    • A telegraphic money order
  • >> C H E C K P O I N T
    • How does a certified check differ from a cashier’s check?