1. Banking and Money What do you know about a bank.

2. What are private financial institutions? They act as intermediaries between savers and borrowers. They act as intermediaries between savers and borrowers.

3. Characteristics of private financial institutions Banks Banks Collect deposits and make loans, provide other services Savings and Loans Savings and Loans Collect deposits and make loans (usually for homes) Credit Unions Credit Unions Collects deposits and makes loans, provides other services Securities brokerages Securities brokerages an asset guaranteeing repayment of a loan that becomes the property of the creditor if the loan is not repaid Receive deposits Receive deposits Savings accounts Make Loans Make Loans Loan money for homes, cars, major purchases.

4. How do financial institutions encourage saving and investing? They ENCOURAGE saving and investing by PAYING INTEREST ON DEPOSITS. They ENCOURAGE saving and investing by PAYING INTEREST ON DEPOSITS.

5. What acts as the central bank- regulating money supply? The FEDERAL RESERVE SYSTEM is the central bank of the U.S.A. The FEDERAL RESERVE SYSTEM is the central bank of the U.S.A. It issues MONEY and regulates the amount of money in circulation. It issues MONEY and regulates the amount of money in circulation. The FEDERAL RESERVE BANK is where banks go to borrow The FEDERAL RESERVE BANK is where banks go to borrow

6. ECONOMY- SLOW OR STIMULATE?!?! To sloooooooow the economy, the Federal Reserve Bank RESTRICTS the MONEY supply, causing interest RATES to RISE. To sloooooooow the economy, the Federal Reserve Bank RESTRICTS the MONEY supply, causing interest RATES to RISE. To boooooooost or stimulate the economy, the FRB, INCREASES the money supply, causing interest RATES to DECLINE. To boooooooost or stimulate the economy, the FRB, INCREASES the money supply, causing interest RATES to DECLINE.

7. Ways the Federal Reserve Bank SLOWS the economy: Increase the reserve requirement Increase the reserve requirement Raises the discount rate Raises the discount rate

8. Ways the Federal Reserve Bank stimulates the economy: Lowers the reserve requirement Lowers the reserve requirement Lowers the discount rate Lowers the discount rate

9. How does the U.S. government promote marketplace competition? Enforcing antitrust legislation to discourage the development of monopolies Enforcing antitrust legislation to discourage the development of monopolies Engaging in global trade Engaging in global trade Supporting business entrepreneurship Supporting business entrepreneurship