The Purpose of Banks
description
Transcript of The Purpose of Banks
The Purpose of Banks Warm up: What is another analogy that
begins with “Money is to an economy like ____________”
LEQHow and why do banks impact the supply of
money in a market economy?
HomeworkCreate a timeline of American Money and
Banking Use pages 382 and 383 in your Economics
Book. Due on Friday
Include Dates in order (14) /14 points
Create a Title for each event (14) /14 points
Include a Description for each (14) /14 points
Draw/print a picture for each (14) /14 points
Total /56 points
Purpose of Banks Banks ____________, directly or indirectly, from ____________ to ____________. The money households do not spend is called ____________. ____________ and ____________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from ____________ to ____________. The money households do not spend is called ____________. ____________ and ____________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to ____________. The money households do not spend is called ____________. ____________ and ____________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called ____________. ____________ and ____________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. ____________ and ____________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and _______________ is what households do with money they do not
spend on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not spend
on goods and services. ____________ provides resources to ____________to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not spend
on goods and services. Savings provides resources to ____________to be used as investment in capital
goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not spend
on goods and services. Savings provides resources to Businesses to be used as investment in
capital goods. When ____________ are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to Businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. ____________ and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to Businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and ____________ both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to Businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers both obtain ____________. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. ____________ are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive ____________ from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying ____________ on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
____________. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
profits. Banks also facilitate exchange by providing access to ____________. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
profits. Banks also facilitate exchange by providing access to money. Bank
depositors can write ____________ or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
profits. Banks also facilitate exchange by providing access to money. Bank
depositors can write checks or withdraw ____________ in order to purchase goods and services.
Purpose of Banks Banks transfer, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and Investing is what households do with money they do not
spend on goods and services. Savings provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers (households) both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits,
and then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
profits. Banks also facilitate exchange by providing access to money. Bank
depositors can write checks or withdraw cash in order to purchase goods and services.
Purpose of Banks Banks transfer funds, directly or indirectly, from savers to borrowers. The money households do not spend is called savings. Saving and investing is what households do with money they do not spend
on goods and services. Saving provides resources to businesses to be used as investment in
capital goods. When loans are made to borrowers, it stimulates the nation’s economy. Businesses and consumers both obtain loans. Mortgages are one kind of a loan. Banks receive deposits from savers and provide loans to borrowers. Banks provide an incentive to savers by paying interest on the deposits, and
then charging interest to borrowers. The difference between interest charged and interest paid is the bank’s
profit. Banks also facilitate exchange by providing access to money. Bank depositors
can write checks or withdraw cash in order to purchase goods and services.
Vocabulary Reasons for Banks Vocabulary and Definitions Bank – Businesses that accept people’s deposits of money in checking and savings
accounts and make loans to people who want to borrow money Borrowing – Using money or things that belong to another person with the
understanding that the things will be returned or the money repaid. Deposit – Money put into a financial account. Also, to place money in a financial
account. Economy – Activities related to the production and distribution of goods and services
in a particular geographic region. Income – Money people earn for work.
Interdependence – A situation in which decisions made by one person affect decisions made by other people, or events in one part of the world or sector of the economy affect other parts of the world or other sectors of the economy.
Interest – Money people receive for allowing the bank or someone else to use their
money. Interest can also mean the fee a borrower pays for a loan. Interest Rate – The price of money that is borrowed or saved. Lender – Someone who lends another person money, usually a bank, or things and
expects to have the money repaid or the item returned. Loan – An arrangement in which a lender gives money or property to a borrower and the
borrower agrees to return the property or repay the money, usually with interest, at some future point in time.
Saving – Income not spent on goods and services; this money is set aside to spend later. Spending – Buying goods and services.