EMS test 5

Commercial Bank

• Retail

• Allow people to open bank accounts, issue cards

• Keep money safe and lend out money to people and businesses

• Is a simple charity to benefit few people

• Make people want to work more, makes more money and gives freely to those who work or don't

History of commercial bank

• Goldsmith is a craftsmen who created jewelry

• Merchains would also leave valuables for the gold

• People would trade with other object (bartering)

• People would have a lot of family and keep it with strangers

• Stones and children to trade

Central banks

• Making coins, printing money

• Setting interest rate

• Decides who and who earns no money even though they work

• Lending money and government assists commercial banks

SARB

(a)  

Invest/save money

• Emergencies

• Holiday

• Goals(educations)

• Retirement

• Wealth building

Savings Account

• Add or take out money

• You will rewarded with interest, interest low retuen

• Safe way to save money (low risk)

• Safe way on Investing your money

• Add money anytime but not take out any time

Fixed Account

• Add or take out money

• You will rewarded with interest, interest low retuen

• Safe way to save money (low risk)

• Safe way on Investing your money

• Add money anytime but not take out any time

Pension fund

• Medium return investment

• You will rewarded with interest, interest low retuen

• Safe way to save money (low risk)

• Some of the salary goes in and when reitired comes back month after month

• Add money anytime but not take out any time

Shares

• Medium return investment

• Sell shares for profits but if company fails lose money

• invest money by buying shares in public companies

• Some of the salary goes in and when retired comes back month after month

• investing can be rewarding (high return) but high risk

Property

• Invest extra money by buying property

• Rent out the property to ternates in the return for rent income

• invest money by buying shares in public companies

• If property damage loses value

• investing can be rewarding (high return) but high risk