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CHAPTER

OBJECTIVESOBJECTIVES

FINANCIALSERVICES

Distinguish between banks and non-banks and the services they provide.

Describe common banking services, such as checking accounts and loans.

Explain why banks have added computer-related services, such as direct deposit, automatic teller machines, and electronic banking.

Describe investment instruments and the importance of liquidity, safety, and growth in investment planning.

Discuss basic concepts related to buying securities through stock markets.

Identify past and present governmental regulations that have changed the financial world.

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FINANCIAL INSTITUTIONS

Differences among banks Banking institutions Non-bank financial institutions

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COMMONBANKING SERVICES

Checking accounts Loans Interest rates

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COMPUTERSAND BANKING

Direct deposits Automatic teller machines Electronic banking

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INVESTMENTINSTRUMENTS

Interest-bearing checking accounts Savings accounts Certificates of deposit Money market accounts Mutual funds Treasury bills Treasury notes and bonds

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INVESTMENTGOALS

Liquidity Safety Growth

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INVESTMENTTRADING

Stock Markets New York Stock Exchange (NYSE) National Association of Securities Dealers

(NASDAQ) Stockbrokers Stock Index

Dow Jones Industrial Average Index NASDAQ Market Index Standard and Poor’s 500 Index