money 101 | finance-lectures.com1 banking and transactions daniel folkinshteyn, phd ...
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Money 101 | finance-lectures.com 1
Banking and Transactions
Daniel Folkinshteyn, PhDhttp://finance-lectures.com/[email protected]
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Learning objectives
Describe the role of transactional financial institutions and services
Explain the function of checking accounts and checks
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Banks
Financial intermediaries
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Bank services
Transactional Savings/Safekeeping Investment Loans/credit Currency exchange Advisory/reporting Commercial
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Transactional services
Deposit/Checking account Check writing/clearing Debit card Bank wire ACH (automated clearing house) ATM (automated teller machine) Bill pay (ACH)
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Checking accounts and checks
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Check transaction
Alice Bob
Check clearing
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Quiz 1
What if someone writes you a check for $500, but they only have $400 in their account at the time?
A: you get $400
B: you get nothing
$400
$500
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Bounced check
Alice Bob
bad check
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Debit cards
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Bank wire and ACH
Alice Bob
Wire: Same or next day Costly, $20-$50,
on each side International
payments Forms usually
required
ACH: 3-4 business days Free U.S. domestic
payments only Easy setup via
bank website, online bill pay
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ATM
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Online banks
"brick and mortar" bank online bank
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Additional reading
https://en.wikipedia.org/wiki/Transaction_account
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Attributions
All images, unless otherwise noted, are sourced from pixabay.com or Wikimedia Commons, and are licensed under CC0, public domain.
Image of Jefferson check, sourced from Wikimedia Commons, by National Numismatic Collection at the Smithsonian Institution, CC-BY-SA 3.0.
Image of personal check sample, sourced from Wikimedia Commons, by Sergio Ortega, CC-BY-SA 3.0.