Objective 4.02 Handouts

6200/6600 Principles of Business and Finance Summer 2010 Page 256

Name: ______________________ Class: _______ Date: _______

Financial Institutions Organizer

Directions: Compare depository and non-depository institutions by completing the provided Venn diagram.

Non-Depository InstitutionsDepository Institutions


Financial Institutions Organizer Continued

Directions: Describe the provided characteristics for comparing financial institutionsServices offered

Safety

Convenience

Fees and charges

Restrictions


Name: ______________________ Class: _______ Date: _______

Very Important Business Terms ActivityDirections: In the right-hand column below, describe why the terms listed in the left-hand column are important to financial institutions and services.

Very Important Business Terms Why the term is important to the topic:

Financial institutions

Commercial bank Example:Commercial banks provide a variety of services; therefore, they can serve individuals and businesses. Banks that offer full services may have specialized departments that process loans and real estate activities.

Deposit institutions

Non-deposit intermediaries


Very Important Business Terms Activity Continued

Services of financial institutions

Bank reconciliation

Bank statement

Check register

Debit card

Deposit slip

Drawee

Drawer


Very Important Business Terms Activity Continued

Endorsement

Federal Deposit Insurance Corporation (FDIC)

Joint account

Outstanding checks

Payee

Signature card

Stop payment order


Name: ______________________ Class: _______ Date: _______

Types of Financial Services Activity

Directions: As a group:

FIRST: select one financial service offered by financial institutions.

SECOND: complete research on the selected service by using the textbook, the Internet, and other resources. Your research should include a description of the service and examples, as possible.

THIRD: summarize the information and prepare a presentation, which could be aPowerPoint or any other visual aid.

Types of financial services:1. Savings services

2. Payment services

3. Lending services

4. Electronic banking

5. Storing of valuables

6. Investment advice

7. Trust management


Name: ______________________ Class: _______ Date: _______

What’s at Your Financial Institution ActivityDirections: Interview a financial institution representative to complete the requested items.

Name of Bank/Financial Institution _____________________________________Location ____________________________________Name of person interviewed _____________________________________Contact information _________________________________________________________________________________________________________________________________________________________________________________

Types of business accounts

Minimum balance

Interest rate

Service charges

Fees for other services

Other restrictions

Regular Checking

Interest –earning checking

Special checking


Name: ______________________ Class: _______ Date: _______

Checking Account OrganizerDirections: Provide responses for listed items.

Describe the process of opening a checking account

The first deposit Types of endorsements

Describe the process of using a checking account

Check-writing procedures

What is bank reconciliation?__________________________________________________________________________________________________________________________________________________________________________________________________________________

What is an outstanding check?______________________________________________________________________________________________________________________________________


Name: ______________________ Class: _______ Date: _______

Anatomy of a Check ActivityDirections: Identify the parts of the check and the order for completing a check.

.

and the order for completing a check.


Name: ______________________ Class: _______ Date: _______

Practicing Writing Checks ActivityDirections: You are authorized to sign checks for Best’s Burgers. Write checks for the provided transactions which occurred during April of this year. Be sure to complete the check register too. The beginning balance is $1,577.89.

April 3 Check number 324 to Adam’s Realty for April store rent, $400 April 10 Check number 325 to Graham Wholesale Supply for meat, $745.86 April 15 Check number 326 to Carolina Power and Light for electric bill, $234.56

1-19

BEST’S BURGERS No. 1 1942

321 Main StreetHayes NC 23422-9321 Date _________________20________

PAY TO THEORDER OF _____________________________________________________________________ $ ___________

______________________________________________________________________________________DOLLARS

PEOPLE’S BANK400 Jefferson Street

Hayes, NC 23422-0400________________________________________________

‘:1914110197‘: 2321233

1-19



PAY TO THEORDER OF _____________________________________________________________________ $ __________

______________________________________________________________________________________DOLLARS


Hayes, NC 23422-0400________________________________________________

‘:1914110197‘: 2321233


Practicing Writing Checks Activity Continued

1-19



PAY TO THEORDER OF _____________________________________________________________________ $ ___________

______________________________________________________________________________________DOLLARS


Hayes, NC 23422-0400________________________________________________

‘:1914110197‘: 2321233

NUMBER DATEDESCRIPTION OF

TRANSACTIONPAYMENT/DEBIT

(-)

T

FEE(IF

ANY)(-)

DEPOSIT/CREDIT

(+)

BALANCE

TO

FOR

TO

FOR

TO

FOR.

TO .

FOR

TO

FOR


Name: ______________________ Class: _______ Date: _______

Bank Reconciliation ActivityDirections: Use the provided scenario and reconcile the checking account.

Marcus Johnston received his bank statement. After comparing the bank statement to his check register, Marcus discovered that he had four outstanding checks:

# 142 $127.50 # 157 $134.00# 156 $ 89.50 # 160 $ 26.00

Marcus also noticed that he had a $40 ATM withdrawal which he had forgotten to record and a deposit of $200 which was not on the bank statement. Also Marcus was charged a service charge of $2.50. The balance in Marcus’ check register is $4,379.92 and the balance on the bank statement is $4,514.42. Reconcile the bank statement.

BANK STATEMENT RECONCILIATION

BALANCE ON BANK STATEMENT $

BALANCE IN CHECK REGISTER $

ADD DEPOSITS NOT ON STATEMENT

TOTAL

$______________

$______________

$______________

$______________

ADD DEPOSITS NOT ALREADY IN YOUR CHECK REGISTER

TOTAL

$______________

$______________

$______________

$______________

SUBTRACT CHECKS ISSUED BUT NOT ON STATEMENT

Check # _________Check # _________Check # _________Check # _________

Total

$______________$______________$______________$______________

$______________

SUBTRACT SERVICE CHARGES AND PAYMENTS NOT IN CHECK REGISTER

Desc. __________Desc. __________Desc. __________Desc. __________

Total

$_______________$_______________$_______________$_______________

$_______________

Balance $______________ Balance $_______________


Name: ______________________ Class: _______ Date: _______

Federal Reserve Graphic OrganizerDirections: Have you ever wondered how money flows around the United States and the world? In this activity, you will research and summarize what the Federal Reserve(sometimes called the ‘Fed’) does. If needed, use additional paper.

What is the Federal Reserve System?__________________________________________________________________________________________________________________________________________________________________________________________________________________

Why does it exist?__________________________________________________________________________________________________________________________________________________________________________________________________________________

Who participates?__________________________________________________________________________________________________________________________________________________________________________________________________________________

How is it organized?__________________________________________________________________________________________________________________________________________________________________________________________________________________

What services are provided by the Federal Reserve System?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Name: ______________________ Class: _______ Date: _______

Current Events for the Federal Reserve System ActivityDirections: Locate a current event related to the Federal Reserve System, and then summarize the event so that it will include all the information below. You may use the Internet, a newspaper, or a magazine.

Summary content:1. Provide a link to (or cite) the article2. Summarize the main points in two paragraphs.3. Summarize the implications of the article (i.e. What are the implications to the

Federal Reserve System, the United States economy, or the world?)4. What is your opinion on the article?

Documents

Objective 4.02 Handouts