BUSN 70 Lecture Notes - Lecture 15: National Credit Union Administration, Preferred Stock, Federal Deposit Insurance Corporation
12 Nov 2017
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Document Summary
Purpose of money is to enable a person or organization to transform a desire into an action. Can be accumulated to increase buying power of the individual or business. Directly dependent on the health of the economy. Savings account - accounts with duns that usually cannot be withdrawn without advance. Debit card - looks like a credit card but works like a check. Checking account, money stored in a bank at any time notice. Using it results in immediate electronic payment. Independent agency used to regulate the nation"s banking and financial industry. Helps speed up the economy, or increase economic growth. Can do this by increasing interest rates. Raising interest rates, makes it harder to get loans. Percentage of deposits a bank must hold in reserve. Has strong effect on the economy and not used often. Rate of interest the fed charges to loan money to the banks. Doesn"t want to do this so it has high interest rates.
