Ch. 11.3 Notes

I.The Federal Reserve (1913)

A. The official national bank of the U.S.

B. The banks duties/ responsibilities:

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1. Lends money to regular banks

2. Sets the interest rate that is changed to banks who borrow money from them

3. Holds money/assets of banks and foreigners

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4. Clears checks written by the public

5. Insures bank deposits up to $100,000 (“FDIC Insured”)

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II. Different types of banksA. Commercial Banks 1. Lends money to businessesB. Savings Bank 2. Lends to individualsC. Savings & Loans

(“S & L”) 1. Bank that invests your savings in high risk ventures

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D. Credit Unions 1. Similar to regular banks, but created and maintained by a group of members who work in the same field or live in the same city

a. Ex. Orange County Teachers Fed. Credit Union

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• http://www.federalreserve.gov/otherfrb.htm

= map of Fed Banks

http://www.moneyfactory.gov/document.cfm/18/106 = Bureau of Engraving & Printinghttp://www.moneyfactory.gov/document.cfm/18/106