1. Chapter 17-1

2.  A bank is business just like a store or factory  Sells services such as checking, and payment accounts, savings accounts, loans, and investments.  Banks are regulated more strictly than most other businesses.

3.  Banks for banks  Supervises and regulates member banks  Helps banks serve the public efficiently  US divided into 12 Federal Reserve districts

4.  Holding of reserves  Clearing checks in different cities

5.  Deposits do not remain idle in banks.  When you deposit money in the bank, you are helping to create jobs and economic growth.

6.  Accept deposits from people and businesses and use them to finance their business.  Commercial Banks – wide range of services  Savings & Loans – savings and loans for home mortgages  Mutual savings banks – owned and operated for the benefit of its depositors.  Credit Unions – user-owned, not-for- profit, cooperative financial institution.

7.  Do not take or hold deposits  Life Insurance Company  Investment Companies  Consumer Finance Companies  Mortgage Companies  Check-Cashing outlets  Pawnshops

8.  Services  Safety – FDIC  Convenience  Fees and Charges  Restrictions