BUS 1 Chapter Notes - Chapter 1: Customer Engagement, Federal Reserve System, Money Supply
Document Summary
For money to be a suitable means of exchange: should be scarce, durable, portable, and divisible. The federal reserve system (the fed) is the central bank of the united states. Financial institutions can be divided into two main groups: depository institutions and nondepository institutions: depository institutions include commercial banks, thrift institutions, and credit unions, nondepository institutions include insurance companies, pension funds, brokerage firms, and finance companies. The federal deposit insurance corporation insures deposits in commercial banks through the. Bank insurance fund and deposits in thrift institutions through the savings association. Ceiling for all fdic-member banks is ,000 per. Deposits in credit unions are insured by the national credit union share insurance fund. The fdic also sets banking policies and practices and reviews banks annually to ensure that they operate fairly and profitably. U. s. banks play an important role in global business by providing loans to foreign governments and businesses.
