Money
What is money
Something we use to buy and sell, no longer needed to rely on trade.
what is the purpose of a checking account?
To keep your money safe and use it for daily or monthly spending.
Before you buy a car, what do you need, ideally?
Good credit and a down payment
What is credit?
(DOUBLE BONUS) What is the federal reserve? What is its purpose?
A bank owned by private business, but operated by the government, to ensure citizens their money is legal, valued, and protected.
What are the 4 ways we use money?
Spend, Earn, invest, and save
What does deposit mean?
to have money put into your accounts.
what 3 factors influence the price of a car payment?
length of loan, price, and interest rate
What is credit needed for?
To receive loans and ultimately save you money on loans.
what does the IRS stand for?
Internal Revenue Services
What are the 2 primary reasons for a savings account?
Making unexpected purchases (hospital bill) or making large purchases (house)
How were banks in the early days backed or insured?
With gold and silver reserves.
Besides the price of the car, what other expenses must you take in consideration of buying a car? (2 answers)
Insurance and maintenance
Why can credit not be neccessary?
you make plenty of money and can buy anything with cash.
(DOUBLE BONUS) What is the Central Bank?
The bank of banks, can lend money to other banks and help them out in a pinch.
Before the federal reserve was created, how did the country handle money or "notes"?
Each bank printed their own and all currency was legalized if it was from an official bank.
What was the gold standard?
When people could swap their money for gold from the bank it had the money to. this was to assure people the money was reliable.
(DOUBLE BONUS)What is the purpose of renting before buying?
Saving money to one day buy a house
What is the range of a credit score (the numbers)
300-850
What does the FDIC (Federal Deposit, Insurance Corporation) do?
It insures people up to $250k their money in their bank is protected. Also can step in for a failing bank
What are the characteristics of money?
durable, portable, scarce, and divisible
(DOUBLE BONUS)What are IRAs and HYSAs?
Individual Retirement account and High Yield saving account
(DOUBLE BONUS) How much is it recommended to pay for housing each month (based on percentage of your income)
no more than 30% of your income
(double Bonus) what 5 factors impact your credit score the most?
How much you owe, Payment history, Length of history, new credit lines, types of credit lines.
How can the FDIC step in for a failing bank?
buy, sell, or liquidate the banks, to ensure its customers their money is protected the best they can.