Miss Smith 7 th Grade Civics *pgs

 Money in savings accounts earn interest  Money can be withdrawn when needed  Usually must keep a minimum balance and limit withdrawals

 The longer the money is invested, the more interest you’ll earn

 Bonds are certificates of debt issued by governments and corporations  Earn interest  When the bond matures/expires, the bond holder gets their money back

 Brokerage houses buy and sell stocks for customers  The employees are called brokers  Stock exchange- where shares are bought and sold  Mutual funds- large number of stocks owned in shares by many people  Mutual market funds- mutual funds that buy short- term bonds

 Banks use savings to fund the loans they provide  This allows businesses to invest in new capital to help their company grow and produce more goods and services

 All financial institutions must receive a state or federal charter to operate