CHAPTER 17Jen Ciampi

Block 3

FEDERAL RESERVES SYSTEM: Federal Reserve System- is the

central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act

Federal Reserve Bank of Richmond serves NC

COMMERCIAL BANK VS. CREDIT UNION: A bank was originally formed to invest

and lend money to commercial businesses who at a much later time began investing and lending money to regular people through it's retail branches.

A credit union is a membership of regular people investing and lending money amongst each other, the regular people, instead of primarily targeting commercial entities.

POPULAR NC BANKS: Wachovia

Bank of America

RBC Bank

SunTrust Banks Inc.

EFT Electronic funds transfer or EFT refers to

the computer-based systems used to perform financial transactions electronically.

It is useful because it helps people transfer money with less confusion and faster than doing it on paper.

AUTOMATIC BILL PAYMENT A checkless system for paying recurring

bills with one authorization statement to a financial institution. For example, the customer would only have to provide one authorization form/letter/document to pay the cable bill each month. The necessary debits and credits are made through an Automated Clearing House (ACH).

This is helpful because it is easier for people to keep track of and more likely for them to follow.

COMMON BANK FEES Overdraft Shell Game Fees

Paper Fees

Courtesy-Overdraft Fees

Point-of-Sale Fees

Last-Minute Bill Pay Fees