Financial Institutions Adapted from Fairfax County CE.10c

Brainteaser Please list things that people, like your parents, do at a bank Please list at least 3 items CE.10c

Financial institution Borrowers get loans from financial institution Private financial institutions act as intermediaries between savers and borrowers. Savers Deposit money Financial institution Borrowers get loans from financial institution Clip art CE.10c

The 4 Types of Private Financial Institutions Clip art CE.10c

Include Banks… Key Term Bank- A business that keeps and lends money! Open up a savings account and checking account Most of their business comes from savings and loans for people’s houses Clip art CE.10c

2.Savings and Loans… Institution accepts deposits from savers They use those deposits to make loans to borrowers Does not offer as much as much services as banks Clip art CE.10c

Operates that same as a bank 3.Credit Unions… A credit union is a special kind of bank that is usually started by a business or a labor union. Operates that same as a bank Clip art CE.10c

and Securities Brokerages… Clip art CE.10c

..The main reason for a brokerage house is to buy and sell stocks. I want to buy… I want to sell… Clip art CE.10c

1. Receive deposits… Depositing money is when you put money into a private financial institution like a bank Clip art CE.10c

2. Make loans. Loans are a way of lending people money when they want to make a big purchase on an item like a house Clip art CE.10c

Encourage saving and investing by paying interest on deposits. Interest varies depending on your private financial institution Interest is accumulated at different periods on your savings and deposits CE.10c

SO WHAT??? What is important to understand about this? CE.10c

Private financial institutions act as intermediaries between savers and borrowers. Clip art CE.10c

3 things that you learned today! 1...2...3 CE.10c