182 Unit 2 Managing Your Finances
Safety
Before you open an account, fi nd out if the banking institution is
insured by the federal government. A sign stating “Insured by FDIC” or
“Insured by NCUA” should appear by the front window or near each teller
station.
You can learn if an institution is FDIC-insured by checking the Federal
Deposit Insurance Corporation’s Web site at
www.fdic.gov.
Access its Bank
Find feature and provide the name and address of the banking institu-
tion you want to check. When customer deposits are federally insured, it
means the bank, savings and loan, or credit union is regularly checked.
The institution must pass ongoing examinations into its fi nancial hold-
ings, operations, and management.
Services of Financial Institutions
Today many of the services offered by fi nancial institutions are
provided through electronic funds transfers. An electronic funds transfer
(EFT) refers to the movement of money electronically from one fi nancial
institution to another. These electronic transactions occur much faster
than check and cash transactions. You may fi nd some of the following
electronic services helpful in managing your money.
Automated Teller Machines
An automated teller machine (ATM), also called cash machine, is a
computer terminal used to transact business with a fi nancial institution.
See 8-3. An ATM card allows customers to withdraw cash from and make
deposits to their accounts using an ATM. The card is coded with account
Linking
to...History
U.S. Department of U.S. Department of
the Treasury the Treasury
In 1789, Congress created the Department of
the Treasury to manage government fi nances and
to promote the growth and stability of the economy.
Alexander Hamilton, a Founding Father and
economist, was the fi rst Secretary of the Treasury.
He is credited with helping to create a strong
federal government and central banking system.
Some specifi c functions of the Treasury
Department are
• produce U.S. bills and coins
• collect taxes, duties, and other payments to
the government
• pay the government’s bills, borrowing money
when necessary
• advise the President on economic matters
• supervise fi nancial institutions
• guard against threats to the U.S. economic
system
• enforce fi nance and tax laws
For more information, visit www.treasury.gov.
History
Bank Examiners
Bank examiners ensure
or enforce compliance
with laws and regulations
governing banking
transactions. They
examine and verify the
accuracy of fi nancial
institutions’ records.