Saving and Investing
The Banking System
Insurance Against Hardship
Money and Credit
Vocabulary
100
How do savings accounts work? What are the consequences of a savings account if you fail to meet the requirements.
Americans sets asides a regular amount of money and the bank pays interest on the deposit. You are required to keep a small minimum balance and you may be charged a service fee if you exceed a specified number of transactions.
100
What re the four types of bank accounts? What are the differences between them.
Credit unions, commercial banks, savings and loans associations, and savings banks. They might serve different people, organized differently, have different services, or serve different purposes.
100
Even though people pay only a small amoount of money, how are they able to collect a large sum when hardship occurs?
Not everyone gets a hardship. Thus, the money they didn't collect which is in a reserve fund, is given to those who do get a hardship.
100
How do you pay later and how do you pay now? 
You pay now through checks, debit and currency. You pay later through credit cards, charge accounts, mortgages, and loans.
100
What is currency? State the three common features of currency.
It is another word for money. The three common features are that money must be durable, easy to carry, and issued in a standard form and considered legal tender by the government.
200
who are the people who buy and stocks for you and where do you do this exchange?
Brokers are the poeple who buy and sell stocks on your behalf. They are employed by the brokerage houses who are part of stock exchanges.
200
What is the origin of banks?
People charged them a fee, to keep their money safe in the heavy vaults. Then the goldsmiths began the money-lending busines as well, loaning people money as long as they signed an agreement. 
200
What are the types of insurance that protects you and your family? Explain each one. You only have to state three.
life insurance, disability and health insurance, social insurance.
200
What is the difference between credit cards and debit cards? The difference between credit cards and charge accounts?
With debit cards, you pay directly from your account and with credit cards, you don't have to pay until the end of the month where you get a bill from the company. And with credit cards, you can use them almost anywhere. While you can specific stores that issued them.
200

What is discounting and why do banks do this?

Deducting the interest on a loan in advance. Banks do this because it helps them save money by not giving you the full loan.

300
How does saving help the economy?
 you are able to increase production or even expand if you have enough capital. Much of that capital comes from your savings in the bank. This helps the economy.
300
What was the S&L crisis?
It was when many S&Ls made bad loans and risky investments because of deregulation allowing them to offer more services. Many of them failed.
300
Why was the Social Security Act created in the 1930s?
It was created during the Great Depression where unemployemtn was a serious problem. It was designed to help people support themselves and their family until they found another job.
300
What are the advantages and disadvantages of credit cards?
If you use credit wisely, it can help you get what you need without having to wait for a ong time to save. If you use it unwisely, you can get serious financial problems such as bankruptcy.
300
Define long-term credit and short-term credit. State the difference between them and one purpose each one serves.
Long-term credit is a loan payable over a long period of time and they are used to buy major appliances, furniture, and other expensive purchases. Short-term credit is when you plan to pay the loan within weeks, or months. It is used for emergency purchases such as replacing a fridge. The difference between is the amount of time they paid.
400
How are stocks regulated ?
The Securities and Exchange Commisstocks and bonds in the exchanges offer accurate information that way the purchasers are not misled. This prevents people from selling watered-down stocks.
400
What are the different types of bank accounts? What does each one do?
There are savings accounts, checking accounts, NOW accounts, money market deposit accounts, and time deposits.
400
What are the three parts of the Social Security Act and what does each does.
Unemployment compensation gives money to unemployed people so theyt can receive benefits until they can find a job. It also helps them to find jobs, as well. Workers' compensation is given to people who have job-related illnesses or injuries to pay medical expenses and replace lost income. Old-age and survivors' insurance is when people pay a percentage of their salary in order to collect benefits if they retire. If they die before retirement age, their families receive payments.
400
what happens if you overextend credit?
your debt keeps increasing and eventually, you might have to sell many of your belongings to satisfy the creditors and declare bankruptcy.
400
What are certificates of deposits and how do they work?
They are investments in which an amount of money is invested for a specified period of time and they earn a guaranteed amount of interest. However, if you withdraw the money, you can be fined a penalty.
500
How are savings organizations regulated?
The FDIC insures your deposits in commercial banks, CDs, savings accounts, and money market accounts. The same thing with credit unions exceptthey arre insured by the National Credit Union Share Insurance Fund. 
500
How much money is insured in commercial accounts and who insures them? Who insures S&Ls after the crisis?
The Federal Deposit Insurance Corporation insured each depositor 250,000 dollars. The Resolution Trust Cortporation is the one who insures S&LS.
500
What are Medicaid and Medicare and what are the differences between the two.
health insurance by the government designed to help their poor and elderly citizens pay their medical expenses. Medicare does the former and Medicaid helps people with low incomes.
500
What are the forms of American currency? Where do they get made? Why might they have to be redesigned?
The coins are pennies, nickels, dimes, half-dollar, quarters, and dollar coins. The dollars are $1, $2, $5, $10, $20, $50, and $100. The coins get made at mints in Denver, Colorado and Philadelphia, Pennsylvania. The dollars get printed in Washington D.C. They might get redesigned in order to prevent counterfeiting.
500
What are bonds, mutual funds, money market funds, and stocks. What do they all have in common?
Mutual funds are investments that reduce risk by investing in many different stocks. Money market funds are investments that buy short-term bonds, but do not have a guaranteed rate of interest and not insured by the government. Stocks are shares of ownership in a corporation. Bonds are certificates of debt issued to people by the government. they are all forms of investment.
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