Download
1 / 17
170 likes | 325 Vues
Answer the following questions in Word ( save as banks and your name). ***If the word is an acronym, what does it stand for and what is it***. What is a bank?.
E N D
Answer the following questions in Word (save as banks and your name) ***If the word is an acronym, what does it stand for and what is it***
What is a bank? A bank is a financial institution that people/companies can keep their money in and know that it’s safe because banks are chartered by the government.
What is a credit union? A federal credit union is a cooperative financial institution chartered by the federal government and owned by individual members. Credit unions different from banks in their philosophy "not-for-profit but for service"
Who is the FDIC? The Federal Deposit Insurance Corporation (FDIC) is a government agency that insures the money in banks and credit unions for at least $250,000.
What is an EFT? An electronic funds transfer is when money is transferred from one account to another online.
What is an ATM? Automated teller machines (ATMs) allow you to get cash, transfer money, or make deposits by using your ATM card along with a PIN (personal identification number).
Are checks equal to cash? Yes and no. Yes if it is a legitimate check and the person/company writing it has the funds to back it up. No if the check is fake or the person/company writing it doesn’t have the money in their account.
Is interest a payment of money? Yes if you think about it in terms of if your money is in an account with an interest rate, they are giving you that money each quarter for keeping it in their bank/credit union.
Is interest considered a price to be paid? When you are borrowing money, yes. You have to pay interest on credit cards and loans so in terms of that type of situation then yes, interest is a price to be paid!
No! If someone breaks into it and takes all of your money then it’s gone. Unfortunately, there is no piggybank insurance! When your money is in a bank or credit union, it is insured by the government. Is a piggybank safe?
Do banks help small business succeed? Yes, a lot of banks give out loans to small businesses and offer a lot of services to them.
Are banks vital to the economy? Yes, since that is where the money is. The banks have money, the government needs money so they rely on the banks, and the people rely on the government so banks are very important! They can decide interest rates and how many loans to give out so in most countries they are regulated.
Can you open a savings account with only $20? All financial institutions are different but yes, a lot of them will allow you to open up a savings with $20
Do you want a high or low interest rate? If you are getting the interest from a checking or savings account, the higher the better. If you are paying on a loan, the lower the better.
What is the NCUA? The National Credit Union Administration (NCUA) is the independent federal agency created by the U.S. Congress to regulate, charter, and supervise federal credit unions.
Do credit unions give loans? If so, what type? Yes, home equity, car, student loans, etc.
Is a CD a type of a savings account? Is it different from a normal savings account? If so, how? Yes, it stands for certificate of deposit and is different than a savings account because it has a higher interest rate but you have to keep it in for a certain number of months/years because you can touch it.
