2. Do Now: Make sure you have this definition written down- Consumer sovereignty: Consumers determine through purchases what goods and services will be produced. *If you have not have your vocab checked for completion, make sure to show it to me.

3. SOL question of the day

4. Economic Flow

5. Financial Institutions Banks & Credit Unions

6. Banks a.They are a business! (They’re making money!) b.They have Interest: a small % of your money offered as incentive

7. Deposits when you make a deposit (put money into a bank), they give you interest on your money as an incentive to keep your money in a bank Ex. so if you keep 100 dollars in a bank, with a 3% interest rate, if you wait, that will turn into $103 and continue growing over time

8. Loans The bank takes the money that people have deposited to give out loans. When you take a loan (or borrow money), you have to pay it back with a higher interest rate Ex. So when you take a loan for 100 dollars from the same bank, they will have a higher interest rate (say 10%) so when you pay back the money, you have to pay $110 so the bank makes a profit of $7.

9. Earn 3% interest per year in Savings!

10. c. Works with businesses and households!

11. Credit Union – Not for profit (no interest!) – Owned and operated by members – Usually have to join or belong in a participating organization – Savings & lending

12. Financial Institutions receive deposits and make loans, they encourage saving and investing by paying interest on deposits

13. https://www.youtube.com/watch?v=fTTGALa RZoc https://www.youtube.com/watch?v=fTTGALa RZoc