money and banking industry

by camille bradley


Money is

a current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.

The three function of money are medium of exchange, unit of account, and store of value

the six characteristics of money are durability, portability, divisibility, uniformity, limited supply, acceptability

The source of money's value is commodity money, representative money, and fiat money

The source for value of money in the United States is the fiat system

History of banking

The First Bank of the United States was one of the four major financial innovations proposed and supported by Hamilton, first Secretary of the Treasury. In addition to the national bank, the other measures were assumption of the state war debts by the U.S. Government, establishment of a mint and imposition of a federal excise tax

In 1832 when the bank of 1811 lost its charter, the Bank War happened(refer to political struggle that developed over the issue of rechartering the Second Bank of the United States(BUS))

The Federal Reserve is the central banking system of the United States. The old of the Federal Reserve today is to provide the nation with a safer, more flexible, an more stable monetary and financial system

The FDIC (Federal Deposit Insurance Corporation) is a United States government corporation created by the Glass-Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks.

Banking Today

Their are several standard measures of the money supply, including the monetary base, M1, and M2.

The money supply in the United States is 3983882.00

The services most often provided include a variety of checking accounts, saving accounts, certificates of deposit, and loans, including car loans and home mortgages.

Banks make profit by giving out money as loans and charging people interest

The different types of financial institutions include commercial banks, investment banks, insurance companies, brokerages, investment companies, unit investment trusts, face amount certificates, management investment companies, etc.

Online banking has changed the face of transitional business and affects commerce across many trades and industries. Online banking provides consumers with a convenient method of conducting bank business from the comfort and security of the own home and personal computer.