1. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction Banks provide a safe place to keep your money and they encourage the flow of money in your community! In a sense, banks grow money within a community by recycling the money people deposit in the form of loans to others in the community! The “multiplier effect” magically turns every dollar you deposit in a local bank into $7 to $8 dollars of economic activity in your community! Banks seem to be easy targets for jokes, but make no mistake – we need them and the services they offer!

2. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved2 Objectives Explain what a bank is and how a bank works You should be able to do following after completing this lesson Discuss how a bank, saving & loan and credit union are similar Explain how you can have more access to banks with fewer banks Summarize how online banking works Review what is the normal business hours for a bank Explain how a bank makes money off the concept of interest List the ways you can withdraw money from a bank Identify why banks are important to your financial future Define the important banking terms introduced in this lesson

3. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved3 6.1.1 – What is a Bank? What the definition of a bank is Why banks are in business Why the term bank is considered generic Typical services offered by banks today In this section, you will learn: Why a saving & loan and credit union are sometimes called banks Who is responsible for overseeing the operation of banks

4. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved4 6.1.2 – A Bank on Every Corner How many banks existed in 1934 and 2008 Why you have more access to banking services today even though there are significantly fewer banks What a branch bank is What the area of interest for a bank is In this section, you will learn: How big or small a bank’s area of interest can be

5. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved5 6.1.3 – Bank Locations Areas where banks are typically located How a bank selects a new location The reason banks select new locations What an ATM is Where banks place ATMs In this section, you will learn: How the bank selects an ATM location

6. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved6 6.1.4 – Operating Hours What the term “normal business hours” means Why the definition of normal business hours is changing Why a bank might be open on Saturday What 24 x 7 x 365 banking is In this section, you will learn: What makes 24 x 7 x 365 banking possible

7. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved7 6.1.5 – How Does a Bank Work? What concept makes it possible for both you and the bank to make money when you deposit money in the bank Why the bank pays you interest when you deposit money Evolution of US Banks Example In this section, you will learn: About recent trends in the number of banks, bank branches and bank profits You will run the following Interactive Example What a financial transaction is How deposit and withdrawal transactions work

8. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved8 6.1.6 – Withdrawing Your Money What banks do with the money you deposit Why a bank is required to have a cash reserve How much of a cash reserve a bank must have How a bank provides access to your money when the bank is not open for business In this section, you will learn: What a cash reserve is

9. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved9 6.1.7 – The Importance of Banks What happens when your money at home is stolen What happens when your money in a bank is stolen Who can provide the financial services you will need How banks help you put your money to work Putting Your Money to Work Exercise In this section, you will learn: You will run the following Interactive Exercise: Common reasons for using a bank’s services How the financial services offered by banks can help grow your money

10. Lesson 6.1 Banking Basics February 28, 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved10 Discussion Questions Is it better to have a single bank in your neighborhood or multiple banks in your neighborhood? Do banks really make money off issuing credit cards to their customers?