itb chap 17
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Introduction to Business© Thomson South-Western
ChapterChapterChapterChapter
Banking and Financial Services17-117-1 Banks and Other Financial
Institutions
17-217-2 Financial Services and Electronic Banking
17-317-3 Checks and Payment Methods
1717
Introduction to Business© Thomson South-Western
Chapter 17
Slide 2
LESSON 17-1
Banks and Other Financial Institutions
Goals Explain the purpose of the Federal
Reserve System. List the types of financial institutions. Discuss factors for selecting a financial
institution.
Introduction to Business© Thomson South-Western
Chapter 17
Slide 3
Key Terms
Federal Reserve System (Fed) commercial bank credit union Federal Deposit Insurance Corporation
(FDIC)
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Chapter 17
Slide 4
THE BANKING SYSTEM
The Federal Reserve System (Fed) Federal Reserve activities Banking and the economy
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Chapter 17
Slide 5
>> C H E C K P O I N T
What is the main purpose of the Federal Reserve System?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 6
TYPES OF FINANCIAL INSTITUTIONS Deposit institutions
Commercial banks Savings and loan associations Mutual savings banks Credit unions
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Chapter 17
Slide 7
TYPES OF FINANCIAL INSTITUTIONS Non-deposit financial institutions
Life insurance companies Investment companies Consumer finance companies Mortgage companies Check-cashing outlets Pawnshops
(continued)
Introduction to Business© Thomson South-Western
Chapter 17
Slide 8
>> C H E C K P O I N T
What are some examples of non-deposit financial institutions?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 9
SELECTING A FINANCIAL INSTITUTION Services offered
Savings accounts Checking and payment accounts Loans and other credit plans Other services, such as safe deposit boxes
Safety Convenience Fees and charges Restrictions
Introduction to Business© Thomson South-Western
Chapter 17
Slide 10
>> C H E C K P O I N T
What factors should be considered when selecting a financial institution?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 11
LESSON 17-2
Financial Services and Electronic Banking
Goals Identify the financial services used by
consumers. Explain types of checking accounts. Describe electronic banking activities.
Introduction to Business© Thomson South-Western
Chapter 17
Slide 12
Key Terms
safe-deposit box service charge debit card
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Chapter 17
Slide 13
TYPES OF FINANCIAL SERVICES Savings services Payment services Lending services Electronic banking Storage of valuables Investment advice Management of trusts
Introduction to Business© Thomson South-Western
Chapter 17
Slide 14
>> C H E C K P O I N T
What are the main financial services used by consumers?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 15
TYPES OF CHECKING ACCOUNTS Regular checking accounts Interest-earning Checking accounts Special checking accounts
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Chapter 17
Slide 16
COMPARING CHECKING ACCOUNTS Minimum balance Interest rate earned, if any Monthly service charge Fees for other services, such as
printing checks and stop payment orders
Other restrictions
Introduction to Business© Thomson South-Western
Chapter 17
Slide 17
>> C H E C K P O I N T
What are three main types of checking accounts?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 18
ELECTRONIC BANKING
E-banking services Automatic teller machines Payments at the point-of-sale Direct deposit Automatic bill payments
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Chapter 17
Slide 19
ELECTRONIC PAYMENTOPTIONS Debit card transactions Online payments Stored-value cards Smart cards
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Chapter 17
Slide 20
BANKING IN THE FUTURE
Financial services combined with wireless technology
Personalized systems for obtaining, transferring, and using funds
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Chapter 17
Slide 21
>> C H E C K P O I N T
What are common electronic banking services?
Introduction to Business© Thomson South-Western
Chapter 17
Slide 22
LESSON 17-3
Checks and Payment Methods
Goals Describe three main types of
endorsements. Describe proper check-writing
procedures. Explain the bank reconciliation process. Identify other payment methods.
Introduction to Business© Thomson South-Western
Chapter 17
Slide 23
Key Terms
endorsement check register stop payment order bank statement bank reconciliation outstanding checks
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Chapter 17
Slide 24
OPENING A CHECKING ACCOUNT Benefits of checking accounts
Convenience and ease of making payments
Safety to make payments with less risk than using cash
Proof of payment A record of finances for managing your
money
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Chapter 17
Slide 25
THE FIRST DEPOSIT
Signature card Joint account Deposit slip
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Chapter 17
Slide 26
SIGNATURE CARD
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Chapter 17
Slide 27
TYPES OF ENDORSEMENTS Blank endorsement Full endorsement Restrictive endorsement
Special endorsement Two signatures required Restrictive endorsement
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Chapter 17
Slide 28
SAMPLE ENDORSEMENTS
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Chapter 17
Slide 29
>> C H E C K P O I N T
What are the three types of endorsements?
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Chapter 17
Slide 30
USING A CHECKING ACCOUNT Check-writing procedures
Elements of a check The check register Writing a check Proper check writing
Stopping payment
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Chapter 17
Slide 31
PARTS OF A CHECK
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Chapter 17
Slide 32
>> C H E C K P O I N T
What is the purpose of a check register?
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THE RECONCILIATION PROCESS Bank statement information Determine checks paid Find differences Calculate adjusted balance
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Chapter 17
Slide 34
MONTHLY ACCOUNT STATEMENT
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Chapter 17
Slide 35
RECONCILIATION FORM
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Chapter 17
Slide 36
>> C H E C K P O I N T
What are causes of differences between the bank statement balance and a person’s check register?
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Slide 37
OTHER TYPES OF PAYMENTS Certified checks Cashier’s checks Traveler’s checks Money orders
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Chapter 17
Slide 38
CERTIFIED CHECKS
Personal check for which a bank has guaranteed payment
Certification stamped on face Signed or initialed by a bank officer
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Chapter 17
Slide 39
CASHIER’S CHECKS
Check that a bank draws on its own funds
Costs the amount of the check plus a service fee
More acceptable than the personal checks
Introduction to Business© Thomson South-Western
Chapter 17
Slide 40
TRAVELER’S CHECKS
Special forms designed for making payments when away from home
Require your signature in two places Cash a check or pay for a purchase Commonly accepted throughout the
world
Introduction to Business© Thomson South-Western
Chapter 17
Slide 41
MONEY ORDERS
Form of payment that orders the issuing agency to pay the amount printed on the form to another party
A bank money order A postal money order An express money order A telegraphic money order
Introduction to Business© Thomson South-Western
Chapter 17
Slide 42
>> C H E C K P O I N T
How does a certified check differ from a cashier’s check?