MP2 FA L2.5 & 2.6 P2P/Online Banking/Unbanked

Front

What are alternative financial services for unbanked individuals?

Back

Prepaid debit cards, check cashing services, money orders, payday loans, and mobile banking apps.

Front

What are the long-term consequences of being unbanked?

Back

Limited access to financial services, higher costs for basic financial transactions, difficulty in building credit history, and exclusion from the formal financial system.

Front

How does being unbanked affect financial inclusion?

Back

Being unbanked limits access to formal financial services and hinders financial inclusion.

Front

What initiatives promote financial inclusion for the unbanked?

Back

Microfinance, mobile banking, and financial literacy programs.

Front

Why do people choose not to use traditional banking services?

Back

Lack of trust in banks, high fees and charges, limited access to banking services in rural areas, and preference for alternative financial services.

Tags

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

Front

What is online banking?

Back

A digital platform that allows individuals to conduct financial transactions via the internet.

Front

What is peer-to-peer lending?

Back

A method of borrowing and lending money directly between individuals without a traditional financial institution.

Front

What is cryptocurrency?

Back

A digital or virtual currency that uses cryptography for security and operates independently of a central authority.

Front

What are the risks of being unbanked?

Back

Higher risk of theft or loss of cash, difficulty in obtaining loans, and inability to participate in online transactions.

Front

What is financial literacy?

Back

The ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.