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CH 8] Business 101 8-1

Chapter 8

Money, Banking,

& Financial Institutions

Objectives
Master the material in this chapter and you will be able to:

1. Outline the characteristics of money and list its functions.

2. Explain the differences of money and near-money.

3. List the major categories of financial institutions and the sources and
uses of their funds.

4. Discuss the functions of the Federal Reserve System and the tools it
uses to increase or decrease the money supply.

5. Explain how banks create money.

6. Explain the purpose and primary functions of the Federal Deposit
Insurance Corporation (FDIC) and the Federal Savings and Loan
Insurance Corporation (FSLIC).

7. Discuss the major provisions of the Banking Act of 1980 and its impact
on financial deregulation.
8
8. Explain the differences between credit cards and debit cards.

9. Discuss the role of the electronic funds transfer system (EFTS), the
trend toward interstate banking, and the financial supermarkets in the
current competition among financial institutions.

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