Unit 2 & 3: Banking & Investing

Standard account

• For customers who want a reliable basic account

• For customers who want premium features

• For customers who want a high-interest savings account

• For customers who want investment options

Online account

• For customers with no need for in-person banking

• For customers who prefer traditional banking methods

• For customers who want to visit a bank branch regularly

• For customers who require face-to-face assistance

It is made up of a pool of funds collected from many investors

• Correct statement about mutual funds

• It is a type of insurance policy

• It is a government savings scheme

• It is a form of real estate investment

Investing

• The act of spending money without any expectation of return.

• The allocation of money or other resources with the expectation of some future benefit.

• A method of saving money for emergencies only.

• A way to gamble on stock prices.

Automated teller machine, Direct deposit, Overdraft protection

• Forms of electronic funds transfer

• Types of bank accounts

• Methods of cash withdrawal

• Ways to earn interest

Diversification

• A strategy to concentrate investments in a single asset

• A risk management technique that spreads assets into a portfolio with a wide variety of investments

• A method to increase the risk of a portfolio

• A technique to eliminate all investment risks

Saving

• Restricting expenses and keeping unspent money to accumulate it

• Investing in high-risk stocks for quick returns

• Spending all available money to enjoy life

• Borrowing money to buy luxury items

Home equity loan

• Allows individuals to borrow against their home's value to finance major expenses

• A type of loan that requires no collateral

• A loan specifically for purchasing a new home

• A short-term loan with high interest rates

Comparing institution loan rates.

• First step to taking out a loan

• Final step in loan approval

• Best way to save money

• Method to increase credit score

- Current bank account and routing numbers
- Initial deposit
- Valid government-issued identification

• Items required to open a savings account

• Documents needed for a loan application

• Requirements for a credit card

• Steps to close a bank account