Banking and the U.S.

Commercial Banks 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

Specialize in long term home mortgage loans Savings & Loans Specialize in long term home mortgage loans Accept deposits

Credit Unions Owned & operated by their members Non-profit bank Low interest loans Checking accounts Higher interest rates on savings accounts

Securities & Exchange Commission Brokerage firms buy & sell stocks for their customers Advise people on investments Dividends may be higher than interest offered by banks

Why is it important to save money? Pay for education Medical bills Emergencies Large purchases

How does the U.S. economy benefit when people deposit money? Helps expand the economy Producers may borrow money Banks invest your savings

What choices does an individual have if he/she wants to save or invest $? Commercial banks Savings and loans Savings banks Credit unions Securities & exchanges (brokerage firms)

How 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