A Report On The Bank Of The United States

The organization selected for analysis and evaluation is American Lake Credit Union. This organization is composed of two main branches, both located in Tacoma, Washington. In contrast to banks, Credit Unions are smaller organizations and are directed by members who are selected via a vote to serve in an all-volunteer board of directors for the organization (Scott, and Johnston, p.2, 2011). Specifically, this credit union was founded in 1948 and has grown since then. (C. Fitzer, personal communication April 7, 2014). For instance, although the organization is small in size through a partnership with a credit union network, it is able to provide general financial services at diverse locations

b. List three differences you found between the accounts and features this bank or credit union offers and the bank from question 1 above. (1-3 sentences. 1.0 points)

Before the Federal Reserve Act was passed, the U.S tried many different things to create a banking system that worked. The first paper money was made to finance the American Revolution. The money was called "continentals". The fiat money notes were issued in such quantity they led to inflation, which, though mild at first, quickly accelerated as the war progressed. In 1791, congress created the First Bank of the United States. It was the

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

Prior to the institution of the Federal Reserve Act, the U.S. financial system’s basic structure was determined by the National Banking Acts of 1863, 1864, and 1865 (Broz, 1999). The purpose of the legislation was to provide a uniform national currency and to raise revenue for the federal government during wartime (Broz, 1999). While effective in its main purposes, it was flawed in the fact that the increase of available currency had little to no effect on consumer demand which led to large seasonal swings in interest rates and banking panics (Friedman & Schwartz, 168-169). In an attempt to rectify the shortcomings of the National Banking System, government turned to the New York Clearinghouse Association, purportedly known as the first central bank. Originally responsible for the settlement of payments between financial institutions, it was chosen because it was the only source at the time that had the ability to provide funds during high demand periods through a discount window or an open market operation (Broz, 1999). In the end, it failed to maintain an adequate amount of liquid reserves to counteract the monetary crisis‘s that ensued during the agricultural harvest cycles, when currency demands accelerated.

Unlike conventional banking systems, credit unions are non-profit and focus on community and member needs. They offer higher interest rates on savings accounts and lower interest rates on loans and mortgages. Although their organizational structure is tax-exempt, they still

In contrast to banks, which are usually owned by shareholders, credit unions are owned by the members of that credit union. Because shareholders do not own them, credit unions do not have to implement large fees to make a profit, much like banks often do. Whereas banks mainly focus on profit, credit unions are non-profit; therefore, it is the members of the credit union who make money off of investments. This allows credit unions to place higher value on customer service and satisfaction than on making a profit. Consequently, credit union loans can offer lower interest rates on loans, credit cards with lower annual percentage rates, and lower fees than banks can.

The first central bank, First Bank of the United States, was first proposed by Alexander Hamilton. Hamilton wanted to use the bank to pay off Revolutionary War debts and to raise future money for the government. The First bank of the United was signed in 1791 and ran until 1811. During its function, Stephan Girard purchased majority shares and ran the bank. Congress refused to renew the bank at the end of its 20- year charter.

Credit unions are institutions that don't make a profit. They use a money cooperative to lend money to its members, which can influence the rates that the person will pay to borrow money. They often don't require a minimum credit score and don't have strict income requirements. The credit union will glance at the potential borrower's income and apply a ratio based on the amount they owe to others. Credit unions allow borrowers to take out small loans, which are as little as $500.

Credit unions came into existence in American as a cooperative measure to serve those of modest means in need of provident and productive credit. They continue with this purpose today. The credit unions function to promote thrift, while providing credit to members. In addition, they work to provide a meaningful bond and affinity among their members, as witnessed by a commonality of related and shared work, routine engagement, common and related interests, activities and experiences, or another shared characteristic of identity or cohesion. These organizations remain exempt from federal and the majority of state taxes as they are owned by the members, are democratically operated, and are

Relay FCU has certain advantages over larger banks and credit unions, the ability to offer higher interest on savings accounts and lower rates on loans are two examples. The drawbacks of being a small firm however, are such that a problem exists of low membership totals. When a new member joins a credit union, their assets become a resource of the firm. The more assets a credit union can amount, the greater risk it can undertake through loans, the number of and type of loans issued increases and the credit union earns more in interest. Maintaining a steady growth in membership may be especially important to Relay FCU because of the potential effects of an aging membership

There are many things to consider when choosing which financial institution is best for you. You must consider what the institution offers and how well it suits you. Although banks and credit unions offer some of the same things it is interesting to look at the differences between them. I chose to compare Chase Bank and Landmark Credit Union and the offers that they make with their checking accounts. First, when looking at Chase, it is established right away that all Chase checking accounts come with online banking and bill pay, mobile banking, access to 15,500 ATMs, and a debit card. These included things can be considered to be very convenient to have with a checking account. Chase also has four types of checking accounts: Chase Total Checking, Chase Premier Plus Checking, Chase

The First Bank of the United States lasted until 1811. In 1804, President Jefferson, who despised the bank, removed any money that the government had from its vaults. When the issue of

The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centred among communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably.

A bank is a financial institution that accepts deposits from the public and creates credit.