Chapter 15 - Money and the financial system. This chapter include objectives: Define money, its functions, and its characteristics; describe various types of money; specify how the federal reserve board manages the money supply and regulates the american banking system; compare and contrast commercial banks, savings and loan associations, credit unions, and mutual savings banks;. | Part 6 Financing the Enterprise © 2015 McGraw-Hill Education. 1 CHAPTER 14 Accounting and Financial Statements CHAPTER 15 Money and the Financial System CHAPTER 16 Financial Management and Securities Markets 15-2 2 Learning Objectives LO 15-1 Define money, its functions, and its characteristics. LO 15-2 Describe various types of money. LO 15-3 Specify how the Federal Reserve Board manages the money supply and regulates the American banking system. LO 15-4 Compare and contrast commercial banks, savings and loan associations, credit unions, and mutual savings banks. LO 15-5 Distinguish among nonbanking institutions such as insurance companies, pension funds, mutual funds, and finance companies. LO 15-6 Investigate the challenges ahead for the banking industry. 15-3 3 Money in the Financial System 15-4 Medium of exchange Trading one good or service for another of similar value Inefficient because not always divisible and can be complicated in multiple-party transactions Before fiat . | Part 6 Financing the Enterprise © 2015 McGraw-Hill Education. 1 CHAPTER 14 Accounting and Financial Statements CHAPTER 15 Money and the Financial System CHAPTER 16 Financial Management and Securities Markets 15-2 2 Learning Objectives LO 15-1 Define money, its functions, and its characteristics. LO 15-2 Describe various types of money. LO 15-3 Specify how the Federal Reserve Board manages the money supply and regulates the American banking system. LO 15-4 Compare and contrast commercial banks, savings and loan associations, credit unions, and mutual savings banks. LO 15-5 Distinguish among nonbanking institutions such as insurance companies, pension funds, mutual funds, and finance companies. LO 15-6 Investigate the challenges ahead for the banking industry. 15-3 3 Money in the Financial System 15-4 Medium of exchange Trading one good or service for another of similar value Inefficient because not always divisible and can be complicated in multiple-party transactions Before fiat money, the trade of goods and services was accomplished through bartering 4 Functions of Money 15-5 To be used as a medium of exchange, money must have: Acceptability Divisibility Portability Stability Durability Difficult to counterfeit 5 Types of Money 15-6 Paper Money and Coins 6 Types of Money 15-7 7 Financial Systems 15-8 8 Four Main Monetary Policy Tools 15-9 9 Other Regulatory Functions of the Fed 15-10 10 Banking Institutions 15-11 11 Insurance for Banks 15-12 12 Nonbanking Institutions 15-13 13 Nonbanking Institutions 15-14 14 Electronic Banking 15-15 .
