|
Standard |
Format
Updated:
Introduces the history, documents, and operational functions of the
banking industry.
Topics include: history, documents, operations, and specialized services.
|
Competency Areas |
Hours |
|
|
History |
Class |
5 |
|
Documents |
D. Lab |
0 |
|
Operations |
P.
Lab/O.B.I. |
0 |
|
Specialized
Services |
Credit |
5 |
|
|
|
|
|
Prerequisite: |
Provisional
admission |
|
Corequisite: |
|
|
Course Guide |
|
Competency |
After completing this section,
the student will: |
Hours |
||
|
Class |
D.Lab
|
P.Lab/ O.B.I. |
||
|
HISTORY |
10 |
0
|
0 |
|
|
History |
Outline
the development of banking from colonial times. |
|
|
|
|
Terms |
Define
banking terms. |
|
|
|
|
Bank laws |
Cite
reasons for major banking acts (National Bank Act, Federal Reserve Act,
Glass-Seagal, Monetary Control, and Garn-St.
Germaine). |
|
|
|
|
|
Describe
the impact of major banking acts. |
|
|
|
|
Operations |
Describe
the operations of thrift institutions, credit unions, and commercial banks. |
|
|
|
|
Monetary
tools |
List the
basic tools the Federal Reserve uses to control the flow of money and credit. |
|
|
|
DOCUMENTS
|
10 |
0
|
0 |
|
|
Terms |
Define
terms related to banking documents. |
|
|
|
|
Barter |
Describe
the operation of the barter system. |
|
|
|
|
Negotiable
instruments |
Name the
requirements of negotiable instruments. |
|
|
|
|
|
Identify
the parties of drafts and their roles. |
|
|
|
|
Endorsements |
Explain
the basic types of endorsements. |
|
|
|
|
|
Describe
the liabilities of endorsers and the concept of holder in due course. |
|
|
|
OPERATIONS
|
25 |
0
|
0 |
|
|
Terms |
Define
terms related to banking operations. |
|
|
|
|
|
Distinguish
among book, collected, and available balances. |
|
|
|
|
|
List
characteristics of cash and non-cash items. |
|
|
|
|
Deposits |
Describe
the processing of deposit items by tellers. |
|
|
|
|
Counterfeit |
Discuss
the problem of counterfeit currency. |
|
|
|
|
Account
relationship |
Explain
the importance of identity, capacity, and authority in account relationships. |
|
|
|
|
Account
types |
List the
types of accounts offered by today's banks. |
|
|
|
|
Interest
expense |
Describe
the impact of interest expense on banks. |
|
|
|
|
Types of
businesses |
Name the
legal distinctions among proprietorships, partnerships, and corporations. |
|
|
|
|
Paying,
cashing checks |
Distinguish
between paying and cashing checks. |
|
|
|
|
Tests |
List
tests checks must pass when presented. |
|
|
|
|
Teller
risks |
List some
of the risks a teller assumes in cashing checks. |
|
|
|
|
Robberies |
Describe
actions tellers should take during holdup attempts. |
|
|
|
|
Check
processing |
Name the
objectives of check processing systems. |
|
|
|
|
|
Explain
the importance of transit numbers and check routing symbols. |
|
|
|
|
|
Explain
the concept of Federal availability versus bank availability. |
|
|
|
|
|
Describe
how a transit check moves through the Federal Reserve System. |
|
|
|
|
Operations
bookkeeping |
Distinguish
between the bookkeeping and general ledger departments in a bank. |
|
|
|
|
|
Name the
sources from which the bookkeeping unit receives its daily work. |
|
|
|
|
|
Describe
the visual and nonvisual tests applied to checks in
the examining process. |
|
|
|
|
|
List the
advantages and disadvantages of the dual posting system. |
|
|
|
|
Loans |
Outline
three objectives in a bank's program of funds management. |
|
|
|
|
|
List the
four basic categories of bank loans. |
|
|
|
|
|
List some
of the legal restrictions affecting bank loans. |
|
|
|
|
|
Outline
the credit analysis process. |
|
|
|
|
Investments |
Outline
bank priorities in funds management. |
|
|
|
|
|
Cite the
legal restrictions on bank investments. |
|
|
|
|
|
Analyze
the effect of tax legislation on bank investment strategies. |
|
|
|
|
Bank
accounting |
Describe
double entry bookkeeping and how debits and credits are used in posting. |
|
|
|
|
|
List the
major asset and liability accounts that appear on a bank's balance sheet. |
|
|
|
|
Pricing |
List the
major income and expense accounts that appear on a bank's income statement. |
|
|
|
|
Profitability |
Name the
four major ratios that are used as a measure of bank profitability. |
|
|
|
|
|
Explain
the importance of loan-loss reserves. |
|
|
|
|
|
Explain
the value of account analysis to both banks and customers. |
|
|
|
|
5 |
0
|
0 |
||
|
Term |
Define
terms related to specialized services. |
|
|
|
|
Letter of
credit |
List
steps in a letter of credit transaction. |
|
|
|
|
Trust |
Distinguish
between the functions of a trustee and an agent. |
|
|
|
|
|
Name the
steps involved in settling estates. |
|
|
|
|
|
Describe
the legal restrictions that affect bank trust operations. |
|
|
|
|
|
List the
duties and responsibilities of a bank acting as a trustee. |
|
|
|
|
Cash
management |
Explain
the deposit, disbursement, and information services banks offer in their cash
management programs. |
|
|
|
|
Safe
deposits |
Explain
the safeguards banks employ in their safe deposit operations. |
|
|
|
|
Suggested Resources |
Books
Compton, E. N. (1988). Principles of banking (3rd ed.).
Audiovisuals
Armed robbery -- prepare to
survive [Videocassette]. (1986).
Aims Media.
Eyewitness [Videocassette]. (1983). Encyclopedia Britannica Educational Corp.