Money and banking industry

by: spencer Woodward

money

money - a current medium of exchange in the form of coins and banknotes; coins and banknotes collectively.
uses of money - Medium of exchange,Unit of account,Store of value.
six characteristics of money - durability, portablility, divisibility, uniformity, limited supply, acceptiblity.
the sources of money's value comes can be seperated into three different categories: commodity, represenative, fiat. commodity is the actual item like trading cows for gold. represenative is when the currency represents a commodity. and fiat money represents nothing.
The dollar is no longer backed by anything. It is only worth something because the people believe in it.

History of banking

The first bank was built because after the revolutionary war america was in debt and needed a common currency between the states.
When the first bank lost its charter it was decommissioned. The Second Bank was formed five years later, bringing renewed controversy despite the U.S. Supreme Court’s support of its power.
the federal reserve is Americas central banking system. they try to keep prices stable.
he Federal Deposit Insurance Corporation is a United States government corporation operating as an independent agency created by the Banking Act of 1933.

Banking today

The money supply is determined by how much people put into savings and how much the federal reserve puts out. 809 billion.
Checking accounts, saving accounts, certificates of deposit, and loans, including car loans and home mortgages.
Banks use depositors' money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts- the difference is the bank's profit.
depository institutions, contractual institution
increase in criminal activity, financial integration.