About This Chapter
Branch Banking & Deposit Insurance - Chapter Summary
Learn all about branch banking and deposit insurance with help from this chapter's expert instructors. They have developed entertaining lessons you can access anytime to improve your understanding of shadow banking, fractional reserve banking, the FDIC and much more. Check your understanding of these topics by taking multiple-choice quizzes and a chapter exam. Any questions you have about the lessons can be easily submitted to our experts via the Dashboard. After completing this chapter, you will have the knowledge to:
- Define and discuss laws and issues linked to branch banking
- Explain the definition and system of shadow banking
- Describe the phrase 'run on the bank'
- Share the history and purpose of the FDIC
- Discuss the history of fractional reserve banking
1. What is Shadow Banking? - Definition & System
In this lesson, you will learn what shadow banking is, how it impacts the financial industry, what effect it has on the economy, and the risk that it carries.
2. Run on the Bank: Definition & Overview
When too many customers distrust their bank and start demanding their money, problems arise. In this lesson, you'll learn what is meant by the phrase 'run on the bank' and why it quickly becomes a financial disaster.
3. FDIC: Definition, History & Purpose
The Federal Deposit Insurance Corporation (FDIC) exists to protect the deposits of bank customers up to $250,000. In this lesson, learn how and why the FDIC began as well as its purpose. Conclude your lesson with a short quiz to test what you have learned.
4. What is Fractional Reserve Banking? - Definition & History
Fractional reserve banking sounds pretty complicated, but it is a business banking model that is surprisingly easy to understand. It is a process by which a bank takes in, and lends out money while still maintaining sufficient funds in reserve available for depositors. As part of this system, central banks manage the way banks operate and limit how much of their funds can be loaned. In this lesson we will find out how this process works.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the TECEP Financial Institutions & Markets: Practice & Test Prep course
- Financial Markets & Financial Instruments
- Interest Rates Overview
- Financial Market Analysis & Trading
- Banks & Other Financial Intermediaries
- The Flow of Funds in Financial Intermediaries
- Regulation of Financial Institutions
- Introduction to International Finance
- Introduction to the Mortgage Market
- Futures & Options
- Money & Interest-Rate Relationships
- Inflation & Income Policies
- TECEP Financial Institutions & Markets Flashcards