Term
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Definition
Lend money, accept deposits, and transfer money among businesses, other banks and financial institutions, and individuals.
*Widest range of services, but huge on loans |
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Term
| Saving and Loan Assiciations |
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Definition
| established to lend money and accept deposits.Called "thrifts." Began as "home-building societies"---take money and borrow it then pay it back |
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Term
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Definition
| serve people who wished to make small deposits that large banks did not want to handle...interest rates slightly lower |
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Term
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Definition
| when members deposit money, they purchase shares to pay interest. Use this savings pool to supply low-cost loans to members...high interest rates. |
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Term
| Automated Teller Machines |
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Definition
| ATM's. Make deposits or withdrawals from checking and savings accounts. Make payments or transfer money. |
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Term
| Automatic Clearing House Services |
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Definition
| Banks transfer money automatically...without writing checks. Transfers money from customer to his/her creditors |
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Term
| Point-of-Sale Transactions |
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Definition
| direct transfer of money from buyer's bank account to seller's bank account. Debit Card. PIN number. Grace Period. |
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Term
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Definition
| Internet. Telephone. Transfer money, set up accounts, apply for loans...etc |
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Term
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Definition
| Reduction of government restrictions. More competition in banking.Regional Banking--banks can merge with other banks and build branch offices in other states. |
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Term
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Definition
| Failure to make payments on a loan. Farmers--FCS--went bankrupt. |
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Term
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Definition
| Loan defaults and bank failures...Great Depression...doesn't have enough assets to cover its accounts. |
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Term
| Savings and Loans in Crisis |
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Definition
| Borrowers failed to make payments on loans, some S&Ls failed and others taken over by larger banks. Only had private insurance led to failure...Financial Institutions REform, Recovery, and Enforcement Act--abolished FSLIC and established the REsolution Trust Corporation to stabilize. |
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