Money
What are the three uses of money?
1. Medium of Exchange
2. Unit of Account
3. Store of Value
What is mortgage?
Installment debt owed on houses, buildings, or land.
Banks bank, buy and sell bonds shred money to put new money in, to check checks, watch dogs of bank "audit"
What is the difference between a checking vs. a savings account?
Checking: There is no limit to how much you can withdraw and you have 24/7 access.
Savings: There is a withdraw limit to how much money you can take out, but you can earn interest
What is the largest economy in the world?
United States
What's a Medium of Exchange
Anything that is used to determine value during an exchange of goods and services
What is FICO?
Fair, Isaac, and Company (1958): A 3 digit number that is an estimate of your financial credit worthiness
Why does the Federal Reserve act as a financial regulation?
FDIC (Federal Deposit Insurance Corporation) keep the banks safe.
What are different ways you can operate your accounts?
- Internet banking
- Mobile banking
- Over the counter service
- ATM
Who signed the Federal Reserve Act into law?
Woodrow Wilson
What is M1?
Money that people can gain access to easily and immediately to pay for goods or services.
What's a secured loan?
A loan backed by collateral.
What does ACH stand for?
Automated Clearing House
What is APR?
Annual Percentage Rate
When was the Federal Reserve Act signed?
December 23rd, 1913
What are the Six Characteristics of Money?
1. Durability
2. Portability
3. Divisibility
4. Uniformity
5. Limited Supply
6. Acceptability
What's bankruptcy?
State of being legally having been declared unable to pay off debts owed with available income. Debtors must give up most of what they own to pay off their creditors. These proceedings will remain on credit history for 10 years, and it'll be difficult to gain credit.
What agency prints currency?
Bureau of Engraving and Printing
What is the difference between a credit vs. debit card?
Credit: Money that you have to pay off, but it can improve your credit score.
Debit: Money that you put into your account that you don't have to pay off.
The Federal Reserve Bank of Chicago is in what district?
7th
What is the National Bank Act of 1863?
Act provided more reliable money, created uniform currency for the nation.
What's the Equal Opportunity Act?
A regulation created by the U.S. Government that aims to give all legal people an equal opportunity to apply for loans, where they cannot be discriminated upon. The only factor that can play in is credit and ability to pay.
What are the three major roles of the Fed?
1. Grow economy (Monetary policy)
2. Keep bank safe (Supervision and regulation)
3. Make payments (Secure payment services)
Why can loans potentially be a bad thing?
If you don't pay back your loans then it can put you in serious debt.
How many district banks were established?
12