Banking Options

Banking Options

receive their money from other sources, like mortgage, finance, and insurance companies.

​Nondepository Institutions

are the ones who receive their money from customer deposits, like in the form of a bank. Their profit is largely generated through the interest paid on loans made to customers.

​Depository Institutions

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Multiple Choice

What is interest?

• Price paid for using someone else's money
• Percentage of people interested in using banks
• How much money the bank pays to keep running
• The amount of money the bank has

Multiple Choice

What is credit?

• Borrowed money that you have to pay back with interest
• Money you do not need to pay back
• Money you've earned for having good credit that isn't paid back
• Borrowed money that isn't paid with interest

Multiple Choice

Which of these services do depository institutions offer?

• Financial advice
• Free money
• Ability to take more money than you have without penalty

Multiple Choice

Which of these fees would an institution NOT charge you?

• Overdraft fee
• ATM fee
• Minimum balance fee
• Fee for using money

Multiple Choice

Depository institutions that offer many banking services and are owned by their customers

• commercial bank
• credit union
• mobile banking
• online banking

Commercial banks

–company that accepts deposits that it uses to make loans, earn profits, pay interest to depositors, and pay dividends to owners.

Each bank is receiving big portion of income from interest on loans payed by borrowers.

Banks are giving the lowest rate or prime rate to their creditworthy customers.

Savings and Loan Association (S&L)

-financial institution accepting deposits and making loans primarily for home mortgages.

Most S&L associations were created to encourage saving habits and provide financing for homes.

Mutual Savings Bank 

–financial institution where all depositors are considered like owners of the bank, sharing profits. All profits are divided proportionately among depositors.

Credit Union 

nonprofit, cooperative financial institution owned and run by its members, usually group of employees, members of a particular organization or people in one community.

Reason of credit unions is to provide members save place to save money and borrow at reasonable rate. Members investing in order to make loan to one another.

Multiple Choice

Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors' accounts?

• Pension funds

• Credit unions

• Securities investment firms

• Commercial banks

Multiple Choice

Which of the following financial institutions are considered to be owned by their depositors?

• Commercial banks and savings and loan associations

• Savings and loan associations and mutual savings banks

• Mutual savings banks and credit unions

• Pension funds and savings institutions

Multiple Choice

Which of the following reasons is the primary motivator for a commercial bank to acquire new depositors?

• A new deposit account will make more funds available to pay the bank's employees

• A new deposit account will make more funds available to facilitate brokerage transactions.

• A new deposit account will make more funds available to give out in loans.

• A new deposit account will make more funds available to give out in dividends to its investors.

Multiple Choice

Digital banks are known to be ________________.

• expensive

• affordable

• far away

• on every corner

Multiple Choice

I can visit a digital only bank.

• True

• False

Federal Reserve System & FDIC​

In 1913, Congress established the Federal Reserve System: "The Fed"

• ​It served as the nation's first true central bank, or bank that can lend to other banks in times of need.

​

In the 1930s, the failure of banks was one reason for the severe economic decline called the Great Depression

• ​ banks loaned large sums of money to many high-risk businesses. Many of these businesses were unable to pay back their loans.

• 1935: ​Led to new laws regulating banks.

  • ​One established the Federal Deposit Insurance Corporation (FDIC), which insures customer deposits if a bank fails.

​The FDIC provides insurance for the funds that you deposit in FDIC-insured banks. This means that, if your FDIC-insured bank fails, the FDIC will protect you against the loss of your insured deposits whether the bank is brick and mortar or online-only. Digital banks also offer services that bridge the physical-digital divide for their customers. When it comes to withdrawals, for example, digital banks typically partner with ATM networks to offer low- or no-fee access for their customers. When it comes to deposits, digital banks often accept cash deposits through retailer partners (stores like CVS and Walgreens), though this can sometimes incur fees. Digital banks can offer these perks in part because they operate with low overhead costs since they maintain no physical branches. Providing low-cost services to retail banking customers is important, as a key audience for many digital banks’ services are unbanked and underbanked individuals.

Multiple Choice

Digital Banks are protected by the FDIC.

• True

• False

Non-deposit Institutions

Pension Fund 

–non deposit pool of funds managed to provide retirement income for its members

Insurance Company 

–non deposit institution that invests funds in stock, real estate and other asset. Funds are collected from premiums charged for insurance coverage.

•Finance Company 

–non deposit institution that specializes in making loans to businesses and consumers

•Securities Investment Dealer (Broker)

–financial institution that buys and sells stocks and bonds both for investors and for its own accounts

Multiple Choice

What type of non deposit institution will buy and sell stocks and bonds on behalf of clients?

• Securities investment dealers

• Pension funds

• Insurance companies

• Finance companies

Multiple Choice

Which of the following affects the value of money?

• How much currency is in circulation

• How many units the currency can be divided into

• How portable the form of currency is

• How durable the form of currency is

Multiple Choice

Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors' accounts?

• Pension funds

• Credit unions

• Securities investment firms

• Commercial banks

Multiple Choice

Which of the following financial institutions are considered to be owned by their depositors?

• Commercial banks and savings and loan associations

• Savings and loan associations and mutual savings banks

• Mutual savings banks and credit unions

• Pension funds and savings institutions

​Financial Services

• Savings: Many financial institutions offer accounts where people can safely store their money for a period of time, all the while earning interest and being protected by insurance. Also, the money is generally available to the account holder at any time, although a fee may be charged if the balance falls below the minimum account limit.

• Payment Services: Financial institutions often offer payment services like demand deposits and checking accounts to businesses and individuals so they can easily pay their bills. We are then able to write checks or use debit cards to take money out of our accounts and pay for things without the inconvenience of going to the bank for cash.

• Loans: A lot of financial institutions offer credit to those people looking to borrow money. These credit opportunities can be short-term or offered over an extended period of time and are used for big things like home mortgages, automobiles, home improvements, education, medical expenses, or travel.

• Financial services: Financial institutions offer these services to help individuals better manage their money and may even provide financial planning, tax assistance, or investment advice.

Multiple Choice

Based on the video you just watched

Bitcoin and the US dollar are both forms of money that can be used to transfer value & buy or sell things. Yet, unlike the US dollar:

• 
  

  Bitcoin’s value is not enforced by the government

• 
  

  Bitcoin can only be bought and sold outside the US

• Bitcoin can only exist is a verified bank account

• Bitcoin’s value can never decrease

​what is nfts all about?

​

​NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated NFTs can be used to represent real-world items like artwork and real-estate. "Tokenizing" these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.

An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online​

​​Nfts are....

​

​

NFTs are also making waves as in-game purchases in video games. it can be bought and sold by players, and include playable assets like unique swords, skins or avatars.​

​what can you do with nfts

​

Multiple Choice

What does NFT stand for?

• Non-Functional Tokens

• Non-Fungble Tokens

• Non-Fungible Tokens

• NordVPN Free Trial

Multiple Choice

What is the most expensive NFT sold?

• 14.9 million dollars

• 98.1 million dollars

• 69.4 million dollars

• 105.8 million dollars

Multiple Choice

What makes an NFT Valuable

• High prices

• Bad artwork

• None of the aabove

• All of the above

Multiple Choice

Is a NFT crypto currency

• Yes

• No

• Maybe

• I don't know