Commercial Banks

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Tradeoffs/ Opportunity CostProduction Possibilities Curve : 

Tradeoffs/ Opportunity CostProduction Possibilities Curve Danielle Adams

Tradeoffs : 

Tradeoffs The exchange of one good or service to purchase or produce another. The result of a trade-off is what you give up in order to get or do something else.

Opportunity Cost : 

Opportunity Cost The value of the next best alternative that had to be given up to do the action that was chosen. An attempt to produce more of any good, means giving up more and more of the other goods.

Slide 4: 

Classic example between military defense and civilian goods. The amount of military goods given up in the year is the opportunity cost for increasing civilian goods production Guns vs. Butter

Production PossibilitiesCurve : 

Production PossibilitiesCurve Used to illustrate opportunity cost A graphical representation showing various maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time.

Commercial Banksand Credit Unions : 

Commercial Banksand Credit Unions Stephanie Tucker 5th

Slide 7: 

Control largest amounts of money Accepts deposits Business loans Deposit Accounts Savings Checking Time deposit Owned by a group of individuals Commercial Bank

ASSETS OF FDIC-INSURED COMMERCIAL BANKS, 2007 : 

ASSETS OF FDIC-INSURED COMMERCIAL BANKS, 2007 http://www.iii.org/financial2/banking/commercial Assets are

Credit Unions : 

Credit Unions Owned and operated by its members Savings accounts Low interest loans Higher interest rates on savings

Credit Unions : 

Credit Unions