Banking System Types of Insurance Monetary Policy

Time Deposit Is a money deposit that you can not take money out Have to leave it in

Demand Deposit (Checking Account) Money that you put in and are able to retrieve it at any time

Debit Card Debit Cards: use like a credit card but the money will automatically come out of your account without you having to pay anything back later

Savings Account money you put into an account that you try not to touch because you want it to earn interest –Have to have money in –Minimum amount to open

Credit Cards type of credit system where you buy now and pay later –Not like a debit card

Commercial Bank a regular bank, where people and companies place their money or take out money –Examples: Bank of America, BB&T, –Most people have their checking and savings accounts here

Savings & Loan Associates traditionally loaned money to people who were buying houses

Credit Unions work for no money –Often sponsored by large corporations, labor unions, or government institutions –Only open to members of the group that sponsors them

FDIC  Federal Deposit Insurance Commission (FDIC): a U.S. government agency providing insurance to depositors of money into financial institutions up to a certain amount

Investment Spending businesses spending money on creating jobs and income generating goods (such as plants and machines) and household spending on residential items –Investment spending adds to a nation’s stock and capital

Capital Investment money a company spends on purchases or upgrades of property, plants, technology and spending equipment

Life Insurance  Life: insurance coverage that pays out a set amount of money to specified people that are beneficiaries upon the death of the individual who is insured

Medical Insurance Medical: is a type of insurance that the insurer pays the medical costs of the person who has the insurance if they become sick or ill

Comprehension Insurance insurance covering damage to your vehicle caused by events other than a collision –Flood, fire, hail, theft, or vandalism

Liability Insurance Liability: pays for injuries to the other party and damages to the other vehicle resulting from an accident you caused. –Also pays if the accident was caused my someone covered by your policy –Includes a driver that is operating your car with your permission

Tight Money economic condition in which there is little money available for loans –Credit is difficult to secure and interest rates are high

Easy Money income obtained with a minimum amount of effort to have it –Credit is easy to secure