Principles of Business and Personal Finance by MissPowerPoint

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									Principles of Business and Personal Finance
7.01 Analyze the roles/responsibilities of the Federal Reserve.

ACTIVITIES OF THE FEDERAL RESERVE
• • • • • • • • • • • • • The Federal Reserve supervises banks. Accepts deposits Lends money Holds reserves Sets limits for loans Approves bank mergers Inspects banks The Federal Reserve participates in open market operations. Buys and sells federal government securities Monitors the reserve requirement Monitors the discount rate Supplies paper currency The Federal Reserve clears checks between banks in different cities. EFT and Automated clearinghouses are used.

Principles of Business and Personal Finance
7.02 Evaluate ways that commercial banks can assist consumers with money management.

Commercial Bank Services For Money Management
Accepting Deposits • Safe way to save for the future • Money earns interest • Less temptation to spend money Transferring Funds (EFT) • Automatic payments • Helps in budgeting • Helps with bill paying • Automatic transfer • Systematic savings habit • (Transfer to savings account) • Savings transferred to checking when needed • Automatic deposit • Paychecks deposited into checking account • ATM • Debit card (or payment with ATM card)
• • • • • Purchases made without cash Home banking Inquiries Assistance with accounts Use computer in bill paying

Commercial Bank Services For Money Management (cont.)
Lending Money • Loans for major purchases (Home, automobile, college) • Bank credit card Storing Valuables • Offer safe-deposit boxes • Boxes are located in well-guarded vaults • Used to store items and documents of value: • Jewelry • Bond/stock certificates • Birth records • Wills, and insurance policies Providing Financial Advice • Investment services • Manage money more efficiently • Advice on investments Trust Management • Managing investments on behalf of the young and elderly

Principles of Business and Personal Finance
7.03 Discuss technological advances and their impact on the banking industry.

TECHNOLOGY IN THE BANKING INDUSTRY
ATM's allow 24-hour access to funds in the bank

On-line banking, Internet banking, direct deposit and banking at home are becoming increasingly popular.

Other technological advances include MICR, OCR, computer generated bank statements, and electronic check verification

Principles of Business and Personal Finance
7.04 Evaluate the various types of checking accounts available through financial institutions.

TYPES OF CHECKING ACCOUNTS ~ Regular Checking ~ Interest Checking (NOW Accounts) ~ Deluxe Interest Checking (Super NOW Accounts) ~ Share draft Accounts ~ Checking Accounts for Students

Principles of Business and Personal Finance
7.05 Demonstrate accuracy in the following areas: a. Opening a persona checking/savings account. b. Making a bank deposit. c. Withdrawing funds. d. Writing and endorsing checks. e. Maintaining a check register. f. Reconciling a bank statement.

Signature Card
ACCOUNT _______ AUTHORIZED SIGNATURE FOR: NAME ______________________________________ ADDRESS ___________________________________ TELEPHONE ________________________________ SIGNATURE _________________________________ DATE _______________________________________

• Each authorized user of the account must complete a signature card. • The name of the card should be the signature used on all account transactions. • This helps detect unauthorized use of the account.

Deposit Slip
For Deposit to the Account of
1-15/1265

Better Burger 123 Money Drive Troy, NC 27371-0123
Date __________________20____ Signature ____________________
Sign Here if Cash Received

Dollars

Cents

People's Bank 400 Jefferson Street Hayes, NC 27371-0400 :1914110197: 2321233

• • • • •

A deposit slip must accompany each deposit. The depositor's name, account number, and the date must be on the deposit slip. Currency, coins and checks must be listed separately. Checks should be identified by the ABA number. The total must be written.

Withdrawal from Savings Account
• A withdrawal slip must be completed when withdrawing funds from a savings account. The completed form contains the: Date Account number Amount withdrawn Signature of the account holder

• • • • •

Writing Checks
No. 1 BEST’S BURGERS 321 Main Street Hayes NC 23422-9321

1-16

1914

Date _____________19______

PAY TO THE ORDER OF __________________________________ $ ____________ ___________________________________________________DOLLARS
PEOPLE’S BANK 400 Jefferson Street Hayes, NC 23422-0400

___________________________________ ‘:1914110197‘: 2321233

Reconciling a Bank Statement
• • • • When the bank statement arrives, compare the canceled checks listed on the statement with your checkbook register to determine which checks are outstanding. Also check the bank statement for any deposits which may be outstanding Check for ATM withdrawals which you might not have recorded Determine if you were charged a service charge or if you earned interest on your account.

BANK STATEMENT RECONCILIATION BALANCE ON BANK STATEMENT ADD DEPOSITS NOT ON STATEMENT TOTAL $ BALANCE IN CHECK REGISTER ADD DEPOSITS NOT ALREADY IN YOUR CHECK REGISTER TOTAL $

$______________ $______________ $______________ $______________ $______________ $______________ $______________ $______________ $______________ $______________

$______________ $______________ $______________ $______________ $______________ $_______________ $_______________ $_______________ $_______________ $_______________

SUBTRACT CHECKS ISSUED BUT NOT ON STATEMENT Check # _________ Check # _________ Check # _________ Check # _________ Total

SUBTRACT SERVICE CHARGES AND ANY PAYMENTS NOT IN CHECK REGISTER Date ____________ Date ____________ Date ____________ Date ____________ Total

$______________ Balance Balance

$_______________


								
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