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• Global Exchange- Rise/Fall of Global Exchange- Rise/Fall of Dollar & U.S. EconomyDollar & U.S. Economy
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Characteristics Of Characteristics Of A Good Money SystemA Good Money System
• PortabilityPortability
• DivisibilityDivisibility
• StabilityStability
• DurabilityDurability
• UniquenessUniqueness
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Cost of PenniesCost of Pennies
• The cost of manufacturing a penny is The cost of manufacturing a penny is worth more than 1-centworth more than 1-cent
• The Mint estimates it will cost 1.23 cents The Mint estimates it will cost 1.23 cents per pennyper penny
• The cost of producing a penny has risen The cost of producing a penny has risen 27% in the last year27% in the last year
• Added penny and nickel expenses will Added penny and nickel expenses will reduce the Mint’s profit this year by $45 reduce the Mint’s profit this year by $45 millionmillion
Source:www.usatoday.com, May 10, 2006Source:www.usatoday.com, May 10, 2006
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$ Bills and Coins$ Bills and Coins
Source: U.S. Department of Treasury, FY 2005 Performance and Accountability Report
American Banking SystemAmerican Banking SystemDepositoryDepository
• Commercial BanksCommercial Banks
• Savings and Loan Savings and Loan Associations/ThriftsAssociations/Thrifts
• Credit UnionsCredit Unions
Non-depositoryNon-depository• Life Insurance Life Insurance
CompaniesCompanies
• Pension FundsPension Funds
• Brokerage FirmsBrokerage Firms
• Finance CompaniesFinance Companies
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United States’ United States’ Largest BanksLargest Banks
$1,082
$1,013
$706
$472
$403
$0 $200 $400 $600 $800 $1,000 $1,200
Bank of America Corp., N.C.
J.P. Morgan Chase and Co., N.Y.
Citigroup, N.Y.
Wachovia Corp., N.C.
Wells Fargo & Co., CA
Source: Infoplease.com
Assets In BillionsAssets In Billions
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Services Available at MostServices Available at Most Commercial BanksCommercial Banks
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Thrift HighlightsThrift Highlights
Office of Thrift Supervision (OTS):Office of Thrift Supervision (OTS):• There are 854 thrifts supervised by OTSThere are 854 thrifts supervised by OTS
• In addition, OTS supervised 480 In addition, OTS supervised 480 company enterprises that owned 448 company enterprises that owned 448 thriftsthrifts
• Thrift industry controlled over $1.5 Thrift industry controlled over $1.5 trillion in total assets (2trillion in total assets (2ndnd Quarter of Quarter of 2006)2006)
Source: www.ots.treas.gov, August 23, 2006
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Number of Credit UnionsNumber of Credit Unions
Source:www.ncua.govSource:www.ncua.gov
Number of Credit Unions as of December 31
8,000 8,500 9,000 9,500 10,000 10,500
2001
2002
2003
2004
2005
Yea
r
Credit Unions
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Regulation ofRegulation of Financial InstitutionsFinancial Institutions
• Federal Reserve BoardFederal Reserve Board
• FDICFDIC
• SAIF(FSLIC)SAIF(FSLIC)
• NCUANCUA
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Future of BankingFuture of Banking
• Repeal of Glass-Steagall (1933)Repeal of Glass-Steagall (1933)