Money and Banking Industry
By Bri Bradley
Money
-Three uses of money include medium of exchange, store of value, and measure of value
-The 6 characteristics of money include durability, portability, divisibility, uniformity, limited supply, and acceptability
-Sources of money's value include interest rates, faith in currency, and market liquidity
-The source of the value of money in the US is we believe we are getting the correct item or service for the correct currency
History of Banking
-When the Bank of 1811 lost its charter, banks started giving out too many bank notes which led to a panic
-The Federal Reserve System is the central banking system of the Untied States it was made by congress to provide the country with a safer financial system
-The FDIC is an independent agency of the United States federal government that preserves public confidence in the banking system by insuring deposits
Banking Today
-The current US money supply is $4,028,362
-The most common services banks supply is checking accounts, savings accounts, certificates of deposit, and loans including car loans and home mortgages
-Banks make money through interest on loans they give out
-Different types of financial institutions include depositary institutions, which are deposit-taking institutions. The other financial institution is Contractual institutions, which include insurance companies and pension funds
-Online banking has changed the world, in the fact that online banking makes banking easier and consumers can check their accounts at any time of the day