Banking basics
What are the three main services banks provide?
Deposits, making loans and providing financial services
What does a teller do?
A bank teller assists customers with various financial transactions at a bank or credit union
What is a loan?
A loan is a sum of money borrowed from a lender with the understanding that it will be repaid, usually with interest, at a later date
What is communication?
Banking communication refers to the exchange of information, messages, and data within and outside a financial institution
What degree helps?
A bachelor's degree in finance, business administration, or a related field like economics or accounting
What is interest?
Interest is the cost of borrowing money or the price paid for the use of money.
What does a loan officer do?
A loan officer's primary responsibility is to help individuals and businesses secure financing, assisting them through the loan application process
What is a credit score?
A credit score is a three-digit number, typically between 300 and 850, that represents your creditworthiness and the likelihood of repaying debt on time
What is attention to detail?
attention to detail is the ability to meticulously and accurately process transactions, manage accounts, and provide accurate information to customers
What is a finance major?
A finance major is an academic program that prepares students for careers in the financial industry by focusing on the study of money, investments, and financial markets
Difference between a credit union and a bank?
Banks are typically for-profit institutions owned by shareholders, while credit unions are member-owned and non-profit.
What does a financial analyst do?
A financial analyst evaluates financial data, analyzes trends, and provides recommendations to help businesses make informed financial decisions
What is APR?
APR, which stands for Annual Percentage Rate, is a measure of the total cost of borrowing money, including the interest rate and any associated fees, expressed as a yearly percentage
What is time management?
time management refers to the systematic organization, prioritization, and allocation of time to efficiently manage tasks, deadlines, and client interactions
a certification is a formal credential or qualification that demonstrates a professional's expertise in a specific area of the banking industry
What is the FDIC?
The FDIC is is an independent agency of the United States government that insures deposits in U.S. banks and thrifts
What does an underwriter do?
An underwriter is a financial professional who assesses and evaluates the risk associated with a potential insurance policy, loan, or investment
What is compound interest?
Compound interest is when you earn interest on the money you've saved and on the interest you earn along the way
Why is integrity important in banking?
Integrity is crucial in banking because it fosters trust, which is the foundation of the industry. Banks handle customers' money and sensitive information, and integrity ensures they act ethically and transparently, preventing fraud, regulatory breaches, and reputational damage
What is Series 7 license ?
A Series 7 license allows the holder to sell a broad range of securities, including stocks, bonds, mutual funds, and options
What is the Federal Reserve?
The Federal Reserve is the central bank of the United States
What does an investment banker do?
An investment banker helps companies and governments raise capital, provide financial advice on major transactions like mergers and acquisitions, and manage other complex financial activities
What is liquidity?
liquidity refers to the ease with which an asset can be converted into cash without affecting its market value
What is analytical thinking?
analytical thinking involves using data and information to understand situations, identify trends, and make informed decisions
How to get into banking without a degree?
To enter the banking industry without a formal degree, focus on gaining essential skills, building a strong network, and demonstrating your commitment to the field