Purpose of Financial Institutions

Front

What does the word DEPOSIT mean in regards to money and banks?

Back

To put money or other valuables in a safe place.

Front

What is one good reason to deposit money into a savings account?

Back

It pays interest.

Front

Which of the following is NOT a good reason to use a financial institution?

Back

Letting your friend borrow $10.

Front

When you pay back a loan, what do you also pay back with?

Back

Interest.

Front

Which of the following is NOT a service a bank provides?

Back

Helps you loan money to your friends.

Front

What is a financial institution?

Back

An organization that provides financial services, such as banks and credit unions.

Front

What is interest?

Back

The extra money paid back on a loan, usually a percentage of the borrowed amount.

Front

Why is it important to save money?

Back

To prepare for future expenses and emergencies.

Front

What is a savings account?

Back

A bank account that earns interest on the money deposited.

Front

What does it mean to withdraw money?

Back

To take money out of a bank account.