Chapter 19 : Lesson 1 Financial Institutions and Your Money

Essential Question: What is the value of learning how to properly budget your money ?

Financial Institution : group that channels savings to investors, including banks, insurance companies, savings and loan associations, credit unions.

Interest : payment made for use of borrowed money.

Interest rate : the price of credit to a borrower

Federal Reserve System (Fed) : a privately owned, publicly controlled, central bank of the United States.

Demand Deposit Account (DDA) : account whose funds can be removed by writing a check and without having to gain prior approval from the depository institution

Creditors : persons or institutions to whom money is owed

Collateral : something of value that a borrower lets the lender claim if a loan is not repaid

Secured : loan that is backed up by collateral

Unsecured : loan guaranteed only by a promise to repay it

Review Question: Chapter 19 : Lesson 1 Read pages 558-567 and answer Review Questions on page 567. Hand in Google Class Room.