Section 1: Banks

 Distinguish Commercial Banks vs. Credit Unions vs. Savings and Loans Associations  Determine the services offered by banks  Identify the role of the Federal Reserve Bank and determine their relationship to money supply  Explain the implications of FDIC/NUCA insurance

Commercial Banks: are owed by investors who seek a PROFIT Credit Unions: Are owned by members who bank there and don’t make a profit o So loan rates are lower and interest on accounts can be higher Savings and Loans Association: specialize in real estate loans

 Saving  Checking/Debit  Money market  CDs  Loans  Credit Cards  Financial Counseling

 Central Bank of the United States  Regulates all US money Supply, which controls interest rates

 After the Great Depression, people didn’t trust banks.  Now banks will insure up to $250,000 in each account and this is backed by the government  Commercial Banks are FDIC Insured  Credit Unions are NUCA insured

 Distinguish, Commercial Banks vs. Credit Unions vs. Savings and Loans Associations  Determine the services offered by banks  Identify the role of the Federal Reserve Bank and determine their relationship to money supply  Explain the implications of FDIC/NUCA insurance I can prove this by completing: 4.1 Which type of bank?