Chapter

15.4. Insuring Bank Deposits*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What banking services do brokerage firms offer?

   "Many brokerage firms offer some banking services. They may offer clients a combined checking and savings account with a high interest rate and also make loans, backed by securities, to them."

2. How do finance companies provide loans to borrowers?

   "A finance company makes short-term loans for which the borrower puts up tangible assets (such as an automobile, inventory, machinery, or property) as security. Finance companies often make loans to i

3. How was federal deposit insurance established in the United States?

   "The U.S. banking system worked fairly well from when the Federal Reserve System was established in 1913 until the stock market crash of 1929 and the Great Depression that followed. Business failures

4. How does the FDIC protect depositors and respond to troubled banks?

   "The FDIC is an independent, quasi-public corporation backed by the full faith and credit of the U.S. government. It examines and supervises about 4,000 banks and savings banks, more than half the ins