* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Banking Services
Survey
Document related concepts
Land banking wikipedia , lookup
Securitization wikipedia , lookup
History of the Federal Reserve System wikipedia , lookup
Peer-to-peer lending wikipedia , lookup
Syndicated loan wikipedia , lookup
Present value wikipedia , lookup
Fractional-reserve banking wikipedia , lookup
Interest rate ceiling wikipedia , lookup
Credit card interest wikipedia , lookup
Interbank lending market wikipedia , lookup
Transcript
All the available in the U.S. M1 ◦ Liquid Money (Easy Access) ◦ 44%= Currency, money not in an account ◦ 55%= Checking Accounts M2 ◦ M1 + Near Money (Interest Bearing) ◦ Exp. Savings Accounts, CD, Money Market Storing Money 1. ◦ Saving Money 2. ◦ 3. Safe place to keep money Savings, Checking, Money Market, CDs Loans (More money out than in) ◦ Lending helps economy function, money in hands of consumers increases demand, money in investors’ hands leads to more businesses ◦ Banks loose money if borrowers default on loans, do not pay back Mortgages 4. ◦ ◦ ◦ Loan to buy real estate Down Payment, minimum of 20% to avoid insurance fees Period of time, usually 30 years Credit Cards 5. ◦ ◦ Interest Based Loans bank lend at time of purchase and consumer repays in bill 1. 2. 3. 4. Interest = price paid to use borrowed money Principal = initial amount of borrowed money Simple interest is only applied on the principal Compound interest is applied to both principal and accumulated interest Commercial banks Savings and Loan Associations Savings Banks ◦ Traditionally provided services to businesses ◦ Offer checking, savings, and loans ◦ Some state chartered others are national ◦ Traditionally just savings accounts and loans for homes ◦ Thrifts- loans for working class people ◦ Offered savings and checking accounts for people with less deposits than commercial banks Credit Unions ◦ Co-ops that specialize in lending and some offer checking accounts Finance Companies ◦ Offer consumer installment loans for large cost items ◦ Higher rates due to better chance of defaults Automated Teller Machines Debit Cards Home Banking Automatic Clearing Houses Stored Value Cards ◦ Replaces the need for some tellers ◦ Able to withdraw money from a checking account from ATM or purchase goods at stores with an ‘electronic check’ ◦ Internet banking, paying bills and other banking services ◦ Regular payments in place of writing physical checks for bills ◦ Pre-paid cards, electronic gift cards, rebate cards