Finance (study of how $ made, lost, managed)
Accountants do the books, Finance people make cash/capital investment decisions
Norm was charged w/overnight investments of Sprint cash (finance position)
Money (Currency, accepted exchange for goods and services)
How much does that equate to per hour?
How do most households earn their $25 per hour?
First banks were always local (cash was local with no regulations) (Pre FDR)
Money must be: Acceptability, Divisibility, Portability, Stability, Durability, Difficult to counterfeit
Banks regionalized, regulations grew, trust was in the details (FDR)
Money Transactions Methods
Paper money and coins
Checking Account
Savings Accounts
Certificates of Deposits (interest rates)
Credit Cards
Debit Cards
Traveler's Checks
Money Orders
Cashier's Checks
Federal Reserve Board (The Fed)
Guardian of American Financial System
Established 1913 (Central Bank, prevents wild swings)
JP Morgan had more $ than US
American's don't like centralized name so it's called the FED
Controls money supply (Policies keeps $ flowing)
Regulates financial institutions
Supervises the FDIC
12 Regions
Monetary Policy (Keeps $ money supply and demand balanced)
Commercial Banks, Savings and Loans
Credit Unions
Mutual Savings Banks
FDIC (1933 Insurance fund for accounts)
National Credit Union Association (Regulates Credit Unions)
Banks Failures Happen (Think Great Recession)
No Homework, enjoy your Thanksgiving
Business Plans due next class:)
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