12_3 Unit 3 Banking Pt 1

Banking

What percent of
teens have
opened a bank
account?

ngpf.org 11/11/22

Q:

Banking

QUESTION OF THE DAY

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Multiple Choice

1. What percent of teens have opened a bank account? About...which percent?

• 30%
• 70%
• 50%

Poll

Do you have a savings account at a bank?

• Yes

• No

​Click here for the Article

​A bank account is a place where you can deposit your money. Bank account types include:

Checking Account. A checking account allows you to manage your daily finances. You add funds to it by depositing checks and cash or setting up direct deposit for your paycheck. You take money out by writing checks, withdrawing cash at a bank branch or ATM, or using a connected debit card.


Savings Account. A savings account is a place to park your money for an emergency or a short-term savings goal like a vacation or car purchase. Savings accounts earn interest, but it’s much less than other investments like stocks and bonds.

​ Money Market Account. A money market account is a savings account that earns higher interest rates than a traditional savings account. Money market accounts often require a sizable initial deposit and limit how many withdrawals you can make each month.

Certificate of Deposit (CDs). A certificate of deposit is another type of savings account. CDs typically offer greater returns than money market accounts, and they’re a safer investment than stocks because they have a fixed rate of return. You can’t access your money until the CD maturity date.

Business Accounts. Business accounts like business checking and savings allow small-business owners, freelancers, and side hustlers to keep their business and personal funds separate. That makes accounting and tax preparation easier and protects your personal money from business-related liabilities.

​ Then there are additional services:

Credit Cards
ATM's, Digital Banking
Cashier's Checks
Money Orders
Traveler's Checks
Wire Transfers
Loans
Notary Services
Safe Deposit Boxes
Foreign Currency Exchange

Multiple Select

List all the general services the bank provides.

• Deposit and Account

• Lending and Credit

• Transaction and Transfer

Open Ended

Why might a bank's range of services be an important factor for someone choosing where to open an account?

Open Ended

Why do banks pay interest on deposits?

Multiple Choice

Traditional Banks typically offer higher interest rates on Savings Accounts.

• False
• True

The Federal Reserve is at the center of
the financial services industry. Founded

in 1913 by Congress..

It provides US with a safe, flexible and

stable monetary system.

1. Set Monetary policy
2. Supervise / Regulate Financial

Institutions

3. Maintain Stability
4. Provide Financial Services for Gov’t

Multiple Choice

What is the Federal Reserve?

• The Central Bank of the US

• The extra money the government has for a rainy day

• The government agency that investigates crime

The Structure of the Fed

Multiple Choice

How many district banks are there?

• 50

• 25

• 12

• 1

History of Money

First form of exchange
was bartering

– Defined as the

exchange of goods
and services for other
goods and services

– Not very efficient

Multiple Choice

What is happening here?

• Bartering
• Cooking
• Flirting
• Machismo

History of Money

Early forms of money:

Shells

Grains

Precious metals

Functions of Money

Money has three uses:

– Medium of exchange
– Unit of accounting
– Store of value

Medium of Exchange

Accepted as payment for goods and services

Store of Value

Used to save for

future spending

Multiple Choice

Who is on the $1 bill?

• Abraham Lincoln

• George Washington

• Benjamin Franklin

• Alexander Hamilton

Multiple Choice

Who is on the $5 bill?

• George Washington

• Benjamin Franklin

• Alexander Hamilton

• Abraham Lincoln

Multiple Choice

Who is on the $10 bill?

• George Washington

• Alexander Hamilton

• Benjamin Franklin

• Abraham Lincoln

Multiple Choice

Who is on the $20 bill?

• Andrew Jackson

• George Washington

• Alexander Hamilton

• Abraham Lincoln

Multiple Choice

Who is on the $50 bill?

• Ulysses Grant

• George Washington

• Alexander Hamilton

• Abraham Lincoln

Multiple Choice

Who is on the $100 bill?

• Ulysses Grant

• George Washington

• Alexander Hamilton

• Benjamin Franklin