the olive garden

BankingMarissa Doria

Block 3

Federal Reserve SystemSupervises and regulates member banks and

helps banks serve the public efficiently They hold reservesClearing checks in different cities: Paying of

checks among different banks in different cities

The Way the Banking System WorksBuild HomesStart New BusinessesPlant CropsFinance EducationsBuy GoodsPave StreetsInvest for RetirementBuild HospitalsBuy New Business Equipment

Commercial BankIt is the most common way for a bank to be

organizedThey are often called full service banks

because they offer a wide variety of financial servicesExamples: Savings Department, Trust

Department and Real Estate Department

Credit UnionUser-owned, not-for-profit, cooperative

financial institution Examples: When a person deposits money and

The National Credit Union Administration

Four Factors that go into deciding which Bank to UseSafetyConvenienceFees and ChargesRestrictions

Popular Banks in North CarolinaBank of AmericaWachoviaBank of North CarolinaSun Trust

Electronic BankingUse of computers and other technology for

banking activities EFT is useful because it allows the customer

many financial services

Credit Card vs. Debit CardCredit Cards are borrowing from the bank to

pay laterDebit card or a cash card is used for ATM

transactionsBanks would prefer you use a debit card

Automatic Bill PaymentRequires a bank customer to authorize preset

amounts of monthly expensesIt is useful because the bank deducts the

payments from your account and transfer them to the appropriate companies

Service Charge and Bank ReconciliationBanks have to take money in order to make

their moneyFee a bank charges for handling a checking

accountBank Reconciliation—Document created to

show how the two balances were brought into agreement

Stop Payment Order and Stored Value CardWritten notice that tells the bank not to pay a

certain checkStored 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

Signature CardOpening your checking account starts with

signing a signature cardIt verifies your signature