Economics of banking full summary: Book, Lectures, Tutorials [Distinction Level] Questions and Answers 2023

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collateral - -property used to guarantee that a loan will be repaid -savings and loan associations - -banks originally established to help people buy homes -credit unions - -banks that are owned... by their members to create a pool of money for low-interest loans -federal reserve system - -the U.S. banking system that handles the banking needs of the federal government and regulates the money supply -discount rate - -the interest rate federal reserve banks charge on loans to member banks -discounting - -deducting interest on loans before giving money to the borrower -WHY DID BANKS FIRST BECOME NECESSARY? - -People had difficulty finding a safe place to keep their riches -TYPES OF BANKS - -- commercial banks - savings and loans associations - saving banks - credit unions -COMMERCIAL BANKS - -- offer a full range of services like ch [Show More]

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