Lecture Business (4/e): Chapter 15 - Ferrell, Hirt, Ferrell

Chapter 15 - Money and the financial system. This chapter include objectives: Define money, its functions, and its characteristics; describe various types of money; specify how the federal reserve board manages the money supply and regulates the american banking system; compare and contrast commercial banks, savings and loan associations, credit unions, and mutual savings banks;...

Part Financing the Enterprise © 2015 McGraw­Hill Education 15-2   CHAPTER 14 Accounting and Financial Statements CHAPTER 15 Money and the Financial System CHAPTER 16 Financial Management and Securities Markets 15-3 Learning Objectives LO 15-1 Define money, its functions, and its characteristics LO 15-2 Describe various types of money LO 15-3 the Specify how the Federal Reserve Board manages money supply and regulates the American banking system LO 15-4 and Compare and contrast commercial banks, savings loan associations, credit unions, and mutual savings banks LO 15-5 Distinguish among nonbanking institutions such as insurance companies, pension funds, mutual funds, finance companies and LO 15-6 Investigate the challenges ahead for the banking industry 15-4 Money in the Financial System • Medium of exchange Before fiat money, the trade of goods and services was accomplished through bartering • • Trading one good or service for another of similar value Inefficient because not always divisible and can be complicated in multiple-party transactions 15-5 Functions of Money To be used as a medium of exchange, money must have: • Acceptability • Stability • Divisibility • Durability • Portability • Difficult to counterfeit 15-6 Types of Money Paper Money and Coins 15-7 Types of Money 15-8 Financial Systems 15-9 Four Main Monetary Policy Tools 15-10 Other Regulatory Functions of the Fed 15-11 Banking Institutions 15-12 Insurance for Banks 15-13 Nonbanking Institutions 15-14 Nonbanking Institutions 15-15 Electronic Banking ... counterfeit 1 5- 6 Types of Money Paper Money and Coins 1 5- 7 Types of Money 1 5- 8 Financial Systems 1 5- 9 Four Main Monetary Policy Tools 1 5- 10 Other Regulatory Functions of the Fed 1 5- 11 Banking.. .1 5- 2   CHAPTER 14 Accounting and Financial Statements CHAPTER 15 Money and the Financial System CHAPTER 16 Financial Management and Securities Markets 1 5- 3 Learning Objectives LO 1 5- 1 Define... Regulatory Functions of the Fed 1 5- 11 Banking Institutions 1 5- 12 Insurance for Banks 1 5- 13 Nonbanking Institutions 1 5- 14 Nonbanking Institutions 1 5- 15 Electronic Banking