Page 472 - Business Principles and Management

Chapter 17 • Financial Services

The Federal Deposit Insurance Corporation (FDIC)
is best known as the federal insurer of bank
deposits for consumers and businesses. The FDIC
makes sure the banks and savings and loans
through which it insures deposits meet high
standards for financial strength and stability. It
is also a great source of information on how to
be an effective banking consumer and protect
your identity, personal information, and finan-
cial resources. Point your browser to www.
thomsonedu.com/school/bpmxtra. Review the
categories of consumer information and select
one of interest to you. Create a poster that high-
lights the facts and consumer tips you learn.

www.thomsonedu.com/school/bpmxtra

17.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Transferring money by computer rather than by check is known as
a. automated cash transfer (ACT)
b. computerized money movement (CMM)
c. electronic funds transfer (EFT)
d. automated transfer machine (ATM)
2. Internet banks can operate at a lower cost than traditional banks
because
a. they do not have to meet the same government regulations
b. they serve more customers than even the largest traditional banks
c. they locate their offices in other countries with lower labor costs
d. they need fewer and less expensive buildings

THINK CRITICALLY
Answer the following questions as completely as possible.
3. What are some reasons many bank customers refuse to use ATMs
and want banks to increase access to bank tellers? If you were a
bank executive, how would you respond to those customers?
4. Do you believe that as banks and nonbanks add services such as
direct deposit and ATMs they should drop the traditional high-cost
services that the technology replaces? Why or
why not?

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