1. Financial Institutions
Adapted from Fairfax County
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2. Brainteaser
Please list things that people, like your parents, do at a bank
Please list at least 3 items
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3. 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
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4. The 4 Types of Private Financial Institutions
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5. 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
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6. 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
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7. 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
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8. and Securities Brokerages…
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9. ..The main reason for a brokerage house is to buy and sell stocks.
I want
to buy…
I want
to sell…
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10. 1. Receive deposits…
Depositing money is when you put money into a private financial institution like a bank
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11. 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
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12. 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
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13. SO WHAT??? What is important to understand about this?
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14. Private financial institutions act as intermediaries between savers and borrowers.
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15. 3 things that you learned today!
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