Econ Ch 15 Lesson 3

Front 1

Describe 3 responsibilities of the Federal Reserve

Back 1

1)Managing the nation's money
2)Serving as the banker for the U.S. government
3)Supervising and regulating the nation's financial institutions

Front 2

Explain how the Fed serves member banks

Back 2

Member banks:
1) deposit some of their reserves at the Fed
2) Turn to the Fed for a loan

Front 3

Describe the 3 types of electronic fund transfers

Back 3

1) Direct Deposit - An electronic fund transfer into a checking or savings account
2)Personal Computer Banking-
The use of a computer for banking transactions
3)Point-of-Sale - The use of a debit card to pay for purchases

Front 4

How does the Fed regulate and supervise the nation's banks?

Back 4

Regulates - it sets the rules for financial institutions
Supervises - sees to it that those rules and federal laws that deal with the banking industry are enforced

Front 5

Check Clearing

Back 5

The movement of a check from the bank at which it deposited back to the bank on which the check was written

Front 6

Electronic Fund Transfer

Back 6

Electronic banking that is initiated through special cards or codes that allow you to access your account

Front 7

Direct Deposit

Back 7

An electronic transfer of funds into a checking or savings account