Chapter 20 – Money, Financial Institutions, and the Federal Reserve
PPT 20-34
Technological Advancements in
Banking
(See complete PowerPoint slide notes on page 20.62)
lecture link 20–11
THE FUTURE OF
TRANSFERRING MONEY
The days of credit card company dominance may be com-
ing to a close as PayPal and other companies are changing the
cashless industry. (See the complete lecture link on page 20.72
of this manual.)
easy.
3. Debit cards ELIMINATE THE PAPER-
HANDLING COSTS of using checks.
fer tool that serves the same function as
a. The magnetic strip on a credit card is re-
PPT 20-35
Smart Cards
(See complete PowerPoint slide notes on page 20.63.)
B. ONLINE BANKING
1. Using online banking, you can complete all your
financial transactions from home on your com-
puter:
learning goal 7
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
PPT 20-36
Making Transactions in Other
Countries
(See complete PowerPoint slide notes on page 20.63.)
20–47
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
1. The World Bank and the IMF are twin intergov-
ernmental pillars that support the structure of the
2. The WORLD BANK is the bank primarily re-
sponsible for financing economic development; it
is also known as the INTERNATIONAL BANK
PPT 20-37
Leading Institutions in International
Banking
(See complete PowerPoint slide notes on page 20.63.)
REACHING BEYOND
our borders
(Text page 573
PPT 20-38
New Issues Facing
the World Bank and
the IMF
(See complete PowerPoint slide notes on page 20.64.)
d. The IMF has allowed some countries like
Brazil, South Korea, and Turkey to put up
barriers to protect their currencies from infla-
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
progress
assessment
(Text page 573)
PPT 20-39
Progress Assessment
(See complete PowerPoint slide notes on page 20.64.)
20–51
PPT 20-1
Chapter Title
PPT 20-2
Learning Goals
PPT 20-3
Learning Goals
20–52
PPT 20-4
Ben Bernanke
PPT 20-5
Name That Company
Company: Mango
PPT 20-6
What’s Money?
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
20–53
PPT 20-7
Standards for a Useful Form of Money
The new $100 bill has features like a 3-D ribbon, as
well as ink with microscopic flakes that shift color.
PPT 20-8
The Money Supply
PPT 20-9
New Money
1. This slide shows the value of different bills print-
ed in 2010.
2. In 2010 over 1 billion $1 bills, 2 billion $20 bills,
and over 2 billion $100 bills were printed.
3. Most of the value of U.S. currency is $100 bills.
4. In 2010 the United States printed more bills in
every category but $1s and $50s when compared
to 2009.
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
PPT 20–10
How Long Does Paper Money Last?
1. This slide gives the students an idea of the life
span of paper money in circulation.
2. The largest denomination ever printed was a
$100,000 gold certificate.
3. Share with students some interesting facts re-
garding U.S. currency:
• Originally, U.S. currency included denomina-
tions of $500, $1,000, $5,000, and $10,000.
No currency printed today is greater than
$100.
• The percentage of U.S. counterfeit currency
in circulation is estimated to be .02%.
• U.S. currency bills are 2.61 inches wide, 6.14
inches long, and .0043 inch thick, and weigh
1 gram.
• It costs 4.2 cents to produce a U.S. bill.
PPT 20–11
Money Milestones
1. This slide illustrates some interesting dates re-
garding U.S. money.
2. Have students look through the dates. Which do
they find most interesting or surprising and why?
3. Ask the students, How do some of the amounts
listed compare to today?
PPT 20–12
Money Facts
PPT 20–13
Exchanging Money Globally
Since the United States abandoned the gold standard,
the U.S. dollar has depreciated by approximately 90%.
PPT 20–14
The Impact of a Falling Dollar
1. This slide highlights some of the issues related to
a falling dollar.
2. While these points are positive, the long-term
implications of a falling dollar are more serious.
3. A declining dollar will eventually result in the
following:
• Higher interest rates on government and
consumer debt.
imports, and commodity prices increase
lars.
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
PPT 20–15
Five Major Parts of the Federal
Reserve System
The Federal Reserve is a quasi-governmental agency
not under the direct control of the U.S. government.
PPT 20–16
The 12 Federal Reserve District Banks
PPT 20–17
Managing the Money Supply
20–59
PPT 20–23
Commercial Banks
PPT 20–24
Commercial Banks’ Services
Commercial banks also offer credit cards, financial
counseling, automatic payment of bills, brokerage ser-
vices, safe-deposit boxes, travelers’ checks, and individu-
al retirement accounts (IRAs).
PPT 20–25
Banking on Social Media
Chapter 20 – Money, Financial Institutions, and the Federal Reserve
PPT 20–26
What to Tell the Teller
PPT 20–27
Savings and Loan Associations
PPT 20–28
Credit Unions
Due to their exemption from federal income taxes,
credit unions’ fees are typically less and the interest rates
paid on deposits are often higher.