Skip to content

Content Header

Banking Basics

Banking Basics published on

Authored by Federal Reserve

Some young savers stash their cash in shoe boxes or jelly jars. Others use “piggy banks,” which today look more like spaceships or cartoon characters.
In any case, the same problem arises. Sooner or later, the piggy bank or jelly jar fills up, and you have to make a decision: Should I spend the money or continue to save? And if I continue to save, should I open a bank account or just find a bigger jar?
Maybe you’ve had to face such a decision yourself. If you decide to keep your money at home, it will just sit there and won’t earn any extra money for you. You also run the risk that a burglar, a fire, or some other disaster will wipe out your savings in the wink of an eye.
Then again, if you open a bank account, you can’t “visit” your money as easily as you can when it sits in your dresser drawer. You can’t just walk into a bank in the middle of the night to count your cash. You can’t run the coins through your fingers or toss the bills in the air and let them rain down on your head.
Opening a bank account is a big step because you are putting your money in someone else’s hands. You’re counting on someone else to handle your money responsibly. Before you do that, it might be a good idea to understand how banks operate.
That’s the purpose of this pamphlet. It won’t tell you everything there is to know about banks and banking, but we hope it will be a good basic introduction.

Publication Date:
Apr 07 2015
ISBN/EAN13:
1511614692 / 9781511614696
Page Count:
44
Binding Type:
US Trade Paper
Trim Size:
8.5″ x 11″
Language:
English
Color:
Black and White
Related Categories:
Education / Finance

14.95

Export-Import Bank (Ex-Im Bank) Reauthorization

Export-Import Bank (Ex-Im Bank) Reauthorization published on

What is Ex-Im Bank? As the official U.S. export credit agency (ECA), Ex-Im Bank finances and insures U.S. exports of goods and services with the goal of supporting U.S. jobs. On a demand-driven basis, it seeks to support exports that the private sector is unwilling or unable to finance alone at commercially viable terms for exporting; and/or to counter government-backed financing offered by foreign countries through their ECAs. The rationales behind Ex-Im Bank’s activities are subject to congressional debate.

Date of Report: June 17, 2015
Pages: 2
Order Number: IF10017
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 
Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

When It Comes to Banking, How Large Is Small? – IN10261

When It Comes to Banking, How Large Is Small? – IN10261 published on

Congress is considering providing regulatory relief for small banks—the topic of CRS Report R43999, An Analysis of the Regulatory Burden on Small Banks. But how are small banks defined and are they different from community banks? Banks are typically classified as small or large based on asset size (i.e., the value of the loans and securities they hold), but there is no standard or commonly accepted threshold for what asset size constitutes a small bank. Some researchers define small as $1 billion or less in assets, whereas others define it as $10 billion or less.

Date of Report: 4/23/2015
Pages: 4
Order Number: IN10261
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Introduction to Financial Services: New Series of CRS Products – IN10225

Introduction to Financial Services: New Series of CRS Products – IN10225 published on

CRS has created a new series of written products providing an introduction to various financial services issues in the 114th Congress. Click on any of the titles below to access an In Focus product, a two-page executive-level briefing product on issues of active and ongoing interest to Congress:

Date of Report: 5/5/2015
Pages: 1
Order Number: IN10225
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

U.S. International Investment Agreements (IIAs) – IF10052

U.S. International Investment Agreements (IIAs) – IF10052 published on

In recent decades, the United States, the largest source of and destination for foreign direct investment (FDI) in 2013, has entered into binding investment agreements with foreign countries to facilitate investment flows, reduce restrictions on foreign investment and expand market access, and enhance investor protections, while balancing other policy interests. Some World Trade Organization  (WTO) agreements address investment issues in a limited manner. In the absence of a comprehensive multilateral agreement, bilateral investment treaties (BITs) and investment chapters in free trade agreements (FTAs), known as international investment agreements (IIAs), have been the primary tools for promoting and protecting international investment.  The role of Congress on IIAs includes setting U.S. trade policy negotiating objectives; Senate ratification of BITs; and congressional consideration and passage of legislation to implement FTAs. Current and future U.S. investment negotiations raise several policy issues for Congress.

Date of Report: U.S. International Investment Agreements (IIAs)
Pages: 2
Order Number: 4/20/2015 
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Introduction to Financial Services: “Regulatory Relief” – IF10162

Introduction to Financial Services: “Regulatory Relief” – IF10162 published on

The 114th Congress is considering legislation to provide “regulatory relief” in the area of financial services. This In Focus gives a broad overview of the policy tradeoffs inherent in relief and the forms that relief proposals could take. It does not cover specific proposals, but instead provides a framework for evaluating any proposal, whether it is targeted at banking, securities, derivatives, or insurance. CRS takes no position on specific regulatory relief proposals or the relative balance between costs and benefits achieved in the current regulatory structure.

Date of Report: March 24, 2015
Pages: 2
Order Number: IF10162
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

H.R. 37 Derivatives Provision May Create Broader Exemption – IF10057

H.R. 37 Derivatives Provision May Create Broader Exemption – IF10057 published on

The 114th Congress has debated the pros and cons of financial reform in H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act (commonly referred to as the financial reform bill). It was passed by the House on January 14, 2015, and includes several provisions on securities, derivatives, and banking. Title II, Section 201 of H.R. 37 (“Treatment of Affiliate Transactions”) includes a derivatives provision that would revise the treatment of transactions that may be exempt from Dodd-Frank requirements for swaps—a type of derivative—when traded between an affiliate of a nonfinancial firm and another company.

Date of Report: March 27, 2015
Pages: 2
Order Number: IF10057
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Small Business Contracting Law – IF10138

Small Business Contracting Law – IF10138 published on

There are multiple provisions of federal law intended to promote Congress’s “declared policy” that a “fair proportion” of government contracts and subcontracts be awarded to small businesses. See 15 U.S.C. §631(a). Some of these provisions are of government-wide applicability, and are generally codified in the Small Business Act. Other provisions pertain only to specific agencies, and are generally not part of the Small Business Act. Rather, they are part of other statutes, such as the provisions of the Armed Services Procurement Act codified in Title 10 of the United States Code (e.g., 10 U.S.C. §2302 note); or they are uncodified provisions of appropriations measures (e.g., 125 Stat. 1245).  This “In Focus” briefly notes key provisions of small business contracting law, and provides citations to CRS reports discussing these provisions in more detail. 

Date of Report: February 23, 2015
Pages: 2
Order Number: IF10138
Price: $5.95

To Order:  CLICK: HERE  to use the SECURE SHOPPING CART 

Email: congress@pennyhill.com 

Phone: 301-253-0881  

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Introduction to Financial Services: International Supervision – IF10129

Introduction to Financial Services: International Supervision – IF10129 published on

The financial crisis of 2007-2008 and subsequent global economic turmoil underscored the interconnectedness of the global financial system as well as its weaknesses. In the wake of the crisis, leaders from the United States and other countries have pursued a wide range of reforms to the international financial regulatory system.  At a basic level, the goal of international financial regulation is to maximize economic gains from integrating global financial markets while minimizing losses from instability and financial crises. Over the past several decades, global capital flows have grown rapidly, driven by deregulation of national financial sectors, advances in technology, and innovation of financial products and instruments. While financial markets have become more global, financial regulation remains territorial, exercised by national governments over financial transactions occurring within their geographic borders.  International financial stability is a policy objective that transcends national boundaries. In the absence of an international financial supervisory or regulatory body, countries, for the past several decades, have negotiated voluntary international financial standards and best practices. However, despite decades of efforts among national regulators to agree on and coordinate international standards on accounting, securities, and bank capital adequacy among the major economies, substantial regulatory differences exist among national regulations. Furthermore, the absence of an institution with the authority to conduct prudential supervision of transnational financial institutions may have contributed to the failure to prevent the 2007-2008 crisis and hampered efforts to contain the spread of financial instability throughout the global economy in the years following the crisis. 

Date of Report: February 10, 2015
Pages: 2
Order Number: IF10129
Price: $5.95

To Order: 

CLICK:HERE  to use the SECURE SHOPPING CART

Email: congress@pennyhill.com

Phone: 301-253-0881 

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Introduction to Financial Services: The Housing Finance System – IF10126

Introduction to Financial Services: The Housing Finance System – IF10126 published on

A loan that uses real estate as collateral is typically referred to as a mortgage. The U.S. mortgage market is one of the largest markets in the world with approximately $10 trillion in debt outstanding. The mortgage market can be thought of as having two major components—the primary market in which mortgages are originated and the secondary market in which existing mortgages are bought and sold.

Date of Report: February 5, 2015
Pages: 2
Order Number: IF10126
Price: $5.95

To Order: 

CLICK:HERE  to use the SECURE SHOPPING CART

Email: congress@pennyhill.com

Phone: 301-253-0881 

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery.

Primary Sidebar